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Why Is Auto Insurance So Expensive?

Billy Johnson: Hey, this is Billy Johnson from the Billy Johnson Insurance Agency. Just wanted to touch base with you, answer a common question. Why is insurance, auto insurance so expensive? I think there’s two driving reasons, you’re grouped with a pool of people that you help pay for everybody in that pools accidents. To fix their cars, to help anybody that was hurt in those accidents, that’s really a lot of the driving cost. Cars, if a bumper gets damaged these days, we don’t fix the bumper, we just simply pop the old one off and pop a new one on. Medical costs have gone through the roof.
You have the frequency of accidents, you have the severity of accidents. Here in Atlanta we probably have some of the worst of both, our frequency is through the roof. We have lots of accidents per 1000 drivers on the road. I think that’s because of our long commutes and weary drivers and people being distracted. Our new Distracted Driving Law is on now and hopefully that’s going to help with some of that, and then the severity is really pretty bad. I believe that those two things are really what’s driving the cost out of being as high as anybody in the country. So I hope that helps, hope that explains some things-