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That High-Tech Car May Raise Your Insurance Rate

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MIAMI (CBSMiami) -- Cars now come with more technology than ever before and it turns out, that's helping to drive up insurance rates.

From rear view cameras and high-tech monitors to computers that respond to commands, cars now come with more technology than ever before.

"Fixing the cars with all the new technology can be more expensive," said Janet Ruiz with the Insurance Information Institute.

Ruiz acknowledges car insurance rates are on the rise.

Nationwide, they climbed nearly eight percent last year. That's almost twice the increase in a typical year.

But why?

It's because cars are getting more expensive to fix and thanks to rising health care costs, so are people injured in accidents.

But the primary reason rates are on the rise, according to the Insurance Information Institute, is more cars.

"We have more cars on the road 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, you can ask your insurer to check for additional discounts like good driver or low mileage.

You may also save money if you've had a life change like getting married or having a child and you can often save on insurance if you bundle it with your homeowners insurance.

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