Something else to consider, is that cars are a lot more complex and expensive to fix nowadays than once upon a time. And in many cases, if the estimate to repair is greater than 60% of the book value, they'll total a car out.
These past few years, with the economy doing better, people have been buying more new cars. And not just that, but nicer, more expensive models as well. So, we're running into the problem of greater repair costs, plus more expensive cars, and it could very well be creating a vicious cycle of costs spiraling out of control.
Edmunds.com did an experiment where one of their employees took a sledge hammer to the rear quarter panel of one of the new aluminum-bodied F-150's. Hit it twice. Did about $4800 worth of damage, although part of that cost was because the shock wave from the hit broke the ~$800 taillight, which had a backup camera in it.
I don't think this increased complexity in cars would cause insurance costs to go up in just one year, but it probably contributes to an upward trend over the long run.
I wonder though, with cars being safer today, what kind of impact that might have on insurance costs? Fewer people die in car crashes nowadays than in the past. However, I wonder, if some people who would have died in a 1975 car, are now injured for life in a 2015 car, perhaps overall medical expenses may rise, as well? Of course, following that logic, someone who was injured for life in a 1975 car crash might only walk away with bruises in a 2015 car.
