While the cost of vehicles in the US dropped about 10% the price of maintaining that car could be nearly $11,000 annually, according to AAA.
>>> STREAM CHANNEL 9 EYEWITNESS NEWS LIVE <<<
A big part of that dollar amount is auto insurance.
According to Channel 9 consumer advisor Clark Howard, the way we drive is a big reason why insurance is so expensive.
This browser does not support the video element.
The average premium is more than $2,000 a year, according to bankrate.com.
“I was shocked. How can they go up that high,” asked driver Edona James.
The yearly premium for her Ford Focus shot up to nearly $3,600 after a fender bender in a parking lot. “On a car that is not even halfway new? It’s just a 2013. I don’t understand that concept,” James said.
Watch: Action 9 confronts manager at restaurant over complaints of unauthorized charges
Ronald Jackson with American Property Casualty Insurance Association said claims like the one filed in James’ case are a big reason for rising premiums.
“The cost to repair a vehicle, the cost to replace the vehicle, be it a new or used car, the cost of medical care. All those factors have increased greatly over the last couple of years when insurance companies are paying those claims when an accident occurs,” Jackson said.
Watch: Extra fees: How much they’re costing you & how to save money
Howard suggested asking auto insurance companies for discounts because of a good driving record, bundling with renters’ insurance, and vehicle safety features.
Also, consider choosing a higher deductible. According to the Insurance Information Institute, an increase from $200 to $500 could bring your collision and comprehensive cost down 15 to 30%.
Watch: ‘It was an imposter’: Fake bank texts lead victims to drain their accounts
Howard also said don’t get too comfortable with an insurance company. They often reward loyalty with rate hikes.
He said drivers need to shop around for auto insurance, and annually check for better rates.
Click here to download the free WFTV news and weather apps, click here to download the WFTV Now app for your smart TV and click here to stream Channel 9 Eyewitness News live.