I’ve noticed my auto insurance premiums have been steadily increasing over the past year. I haven’t had any accidents or tickets, so I’m a bit confused. Could someone shed some light on why auto insurance rates might go up even if your driving record is clean? Is there anything specific I should be looking out for or factors I might not be aware of that could be influencing this increase?
The way auto insurance works is a lot like how cable and other services work. Businesses will lure you in with a lower initial premium and then gradually increase it every six months because, (1) they know it’s difficult for customers to shop about and switch, and (2) they know that most people will just take it and pay more.
Make it a practice to compare prices every two to three years, or just give them a call and speak with them. Threaten to go somewhere if they don’t apply for any discounts you may be qualified for. The rate at which your premium will decrease will surprise you.
Hello, Ryan. Young, changing your address, and adding a new vehicle or driver all boost claims in your ZIP code, as well as the cost of car repair or replacement. Understand that insurance premiums are not raised arbitrarily, and the rationale for a car insurance rate increase is usually always related to insurance risk.
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It was explained to me that in the event of numerous accidents and claims, the company avoids incurring a direct loss by distributing the cost among policyholders through rate increases. Not the best. It’s frustrating to have to deal with the increases in my car insurance premiums just because other people got into accidents. I only drive about 3 or 4k per year, so it feels unfair. Anyway, that’s what my agent informed me, in my personal experience.
It can be a result of rising costs of repairs and medical care. Increases in the cost of vehicle repairs, parts, labor, and medical care can lead to higher insurance premiums for everyone.