Auto insurance rates affected by the cost of health care

Nurse reading medical fileEvery time health insurance premiums increase, the cost of auto insurance coverage will go up as well, according to financial website Savingadvice.com.

The price to pay for someone injured in an auto accident is high and when health insurance rates increase, it costs auto insurance companies even more. Health insurance prices directly affect what auto insurers have to pay for medical costs and lawsuits, and in order to afford these bills, they must raise premium rates. With a majority of states requiring liability insurance, drivers cannot steer clear of these rising rates, Savingadvice.com said.

What if the accident is someone else’s fault and that person is uninsured? “Your insurer will likely have to pick up the tab, and it may cost quite a lot. If you carry uninsured motorist coverage, you can expect that premium to increase when health insurance rises,” the website said.

Even if auto premiums rise, it’s cheaper in the long run to have liability insurance. Not being covered can send a person into deep debt, taking a lifetime to pay off.ADNFCR-3298-ID-19771581-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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