Eight Reasons Your Auto Insurance Bill Could Change

The number at the bottom of your auto bill is determined by many different factors. Sometimes the causes for increases are simple and can be easily anticipated based on common circumstances, while others may be unforeseen and are more complex.

National trends affect insurance rates across all carriers and types of drivers

  • Distracted driving leads to more claims - Texting and other forms of distracted driving increase the chances of a crash—and distracted driving is on the rise. This leads to an increase in claims made to insurers, making the cost to insure everyone higher.
  • People are driving more - Driving patterns have changed since the pandemic, and Americans are back on the road. Travel on U.S. roads has increased 10% from January 2021 to December 2022.1 The increase in traffic means more accidents and more costly repairs.
  • Repair costs are increasing - Inflation is taking its toll and causing prices to increase at the fastest rate since the early 1980s. Most industries are experiencing the effects of rising inflation, and the auto industry is no exception as prices have increased in several areas over the past two years.2
    • - New vehicles: +18%
    • - Vehicle repair: +13%
    • - Used vehicles: +28%
    • - Body work: +20%
    • - Auto parts: +21%
  • Supply-chain shortages - specifically, the shortage of auto computer chips led to 11.3 million vehicles being trimmed from production in 2021, reducing vehicle supply and increasing demand and costs.3

Individual factors may affect how much you pay

  • Type of vehicles - The type and year of your vehicle, engine size, safety ratings and risk of theft affect your premiums.
  • Drivers covered - Because of lack of time behind the wheel, insuring a teen or less experienced driver adds to your risk and can increase your cost.
  • Where you live and work - Population density, commuting miles and the average number and cost of claims in an area all have an impact on the chance that you’ll be involved in an accident.
  • Your driving record and claims history - Receiving a speeding ticket or filing a claim may result in an increase in your rates, as your insurer may see them as an indication that you are at a greater risk of having a future accident.

There's good news! You may be able to lower your cost.

There are some coverages you’re required to have on your vehicle; however, as your needs change, regularly review your policy to make sure it still works for you.

  • Choose a higher deductible to lower your premium - Increase your deductible, but keep in mind that while your monthly cost will be less, your out-of-pocket costs will increase if you file a claim.
  • Look for discounts - Horace Mann offers multiline, multicar and educator discounts — check with your local representative to make sure you are receiving all the discounts available to you.

To make sure you’ve got the right coverage to meet your needs, contact your Horace Mann representative.

1. Federal Highway Administration
2. U.S. Bureau of Labor Statistics, Jan. 2021 - Oct. 2022
3. insurancejournal.com

The information provided here is based upon industry research and rate data. Horace Mann Insurance Company and its affiliates underwrite Horace Mann auto insurance. The benefits and discounts listed are only general descriptions of coverage and do not constitute a statement of contract. Additional terms and conditions, as described in the policy, must be met for the coverage to be provided. Not all benefits available in all states.

WBAI-0009 (4-23)

© 2023 Horace Mann Educators Corporation

CUSTOMER SERVICE Call 800-999-1030

  • Auto and Property
    M – F, 7 a.m. - 8 p.m. Central time.
  • Life, Annuity and Group
    M – F, 7 a.m. - 7 p.m. Central time.