NEW YORK (CBSNewYork) — New technology means cars are now safer than ever but auto insurance rates are on the rise.
From rear-view cameras to computers that respond to commands, cars now come with more technology than ever before.READ MORE: Lincoln Center Launching New Series Of Outdoor Events Featuring Film Screenings, Cabaret Series & More
But nationwide, rates climbed nearly eight percent last year, almost twice the increase in a typical year. The reason? Cars are getting more expensive to fix and thanks to rising health care costs, so are people injured in accidents.
“Fixing the cars with all the new technology can be more expensive,” said Janet Ruiz with the Insurance Information Institute.
But the primary reason rates are on the rise, according to III, is there are more cars on the road.READ MORE: NYS Senate Majority Leader Andrea Stewart-Cousins Calls Sexual Harassment Claims Against Gov. Andrew Cuomo 'Extremely Disturbing'
“So when we have more cars on the road we have more accidents,” said Ruiz.
According to the most recent industry figures, insurers paid out $7.5 billion more in 2014 than they made from premiums thanks to more accidents, healthcare costs and high-tech cars.
“Insurers are raising rates so they have the right amount of money to pay claims at the end of the day,” said Ruiz.
With rates on the rise, there are some things you can do. Ask your insurer to check for additional discounts like good driver or low mileage.MORE NEWS: New York City Schools Chancellor Richard Carranza Stepping Down
You may also save money if you’ve had a life changing event, like getting married or having a child, and you can often save on insurance if you bundle it with your homeowner’s insurance.