Why Minnesota Car Insurance Costs Could Change In The Next Several Years
Minnesota car insurance costs may rise on average over the next year due to several new state laws. Rising insurance costs could be trouble for some drivers, especially unsafe drivers who will see the most serious consequences from the new legislation. Here's an overview of some of the most serious factors which could lead to rising insurance rates statewide.
One new state law allows Minnesota car insurance companies to drop drivers who have their licenses suspended due to serious speeding and other infractions. This is a relatively small group of drivers; only about 20 drivers per month on average are caught speeding over 100 mph in Minnesota. Even so, these drivers may not be able to find insurance from major providers, and the insurance companies that do offer coverage to high-risk drivers will likely raise their rates. There are also a growing number of offenses which can result in higher car insurance rates in the state. For instance, distracted driving - specifically, driving while text messaging - can mean much higher auto insurance rates for drivers who are caught in the act. More traffic infractions means higher car insurance rates across the state. Minnesota car insurance costs may also rise simply due to the state of the economy. Car insurance companies base their rates off of the amount of money that they're able to loan from banks and, when banks aren't loaning money, car insurance rates can rise. Over the last several years, car insurance rates in Minnesota and other states have steadily increased as the economy has suffered.
However, there are other factors which may work to counteract rising insurance costs in Minnesota. Car crime has decreased in the last year and, since crimes like car theft account for a major portion of car insurance claims, more arrests and less crime could mean better rates for drivers. Minnesota car insurance companies also claim that the state's new laws will allow them more freedom in setting good prices for safe drivers. They contend that drivers with great records will be safe from rising insurance costs and may actually see significant discounts in their insurance policies over the next several years.
Minnesota drivers can keep their insurance rates down by looking online for low cost policies. They can also look into discount programs, which can often decrease the cost of a car insurance policy by 20% or more. Car insurance discounts are often issued for homeowners, good students and other relatively low-risk drivers. By staying safe and by avoiding traffic tickets and insurance claims, Minnesota drivers can keep their insurance rates low, even if rates rise across the state over the next several years.