Let's take a look at these questions, and in the process perhaps bring a little sense and understanding to the money-eating auto insurance beast. Much of the increase is attributable to our increasingly urban population. We live closer to each other in cities, meaning there are more cars on the road and more of us to get in each other's way. That means more opportunity for accidents. We drive more miles than ever before, too, and those extra miles mean additional chances for mishaps.
Cars are much more complex, so repair costs are higher.
As insurance companies' loss exposure increases, so do insurance premiums. Add the escalating problems of theft and fraud, and the rising cost of medical care, and it's easy to see why premiums sometimes seem out of control. You have options in building the best auto insurance deal. For starters, be prepared to spend almost as much time looking into buying insurance as you did into buying that new car. Of course, buying insurance has nothing to compare with the thrill of taking possession of your vehicle.