Auto insurance rates have been going up. Unfortunately, that’s likely to continue into 2022.

Here are some of the reasons why – and some strategies for bringing your costs down:

Injury costs. The number of claims involving injuries has gone down. But the average cost of those claims has increased by a third. Companies with employees who drive on the job can decrease their costs from accident-related injuries by providing training for their employees who drive on the job and by creating a “safety culture” among their employees. For families, spend time working with the newer drivers in your family to increase their attention too safety. Some insurance companies provide apps that monitor driving safety and offer advice on how to make improvements.

Distracted drivers. Drivers distracted by mobile devices and infotainment systems have become a huge safety hazard. Nearly 80 percent of drivers admitted in a survey that they make or take phone calls while driving. Nearly a third said they have narrowly avoided crashes because of distracted driving. Texting while driving is particularly dangerous. Companies can reduce their risks by creating and enforcing strict policies covering distracted driving. For personal driving, avoid texting and phone calls while behind the wheel. No call or text is more important than your safety and the safety of those around you.

Inexperienced drivers. This has become a growing problem for companies with employees who drive on the job. A shortage of commercial drivers means more drivers are switching jobs, increasing the number of companies using less-experienced drivers. Even experienced drivers may be more accident-prone than normal while adjusting to new (to them) vehicles and routes. Within your family, I encourage my clients to stress safety issues while teaching new drivers how to drive and, when required or possible, provide professional driver training before they begin driving on their own.

Vehicle repair costs. Overall, the number of accidents is down. But the average cost per accident has increased, in part because of the cost of replacing computerized technology designed to make driving safer and more comfortable.

Business interruption. For businesses with employee drivers, accidents can take employees and vehicles out of service, leading to lost productivity and higher costs. This is another reason to stress safety to all your employee drivers. And accidents where your employees are found at fault can result in expensive litigation costs.

We’ve all seen ads from lawyers urging people involved in accidents to hire them. The pricy settlements that result from accident-related litigation also has added to the cost of auto insurance – another reason to stress safety with you employee drivers and members of your family who drive.

To summarize, if your business has employees who drive while on the job, create a policy covering driving safety, make sure your employees understand the policy and that you follow the policy. And promote safe-driving practices within your company. Emphasizing driver safety with members of your family who drive is also a good idea.

Need advice on how to keep your insurance costs down? Call me at (303) 452-6662.