WHYDOES MY CAR INSURANCE KEEP GOING UP
If you own a car then it is necessary in most states that you get it insured too. Now, after you had your car insurance for few years you found that the car insurance amount is going up every year although there is no such claim! And you are left with the question that why does my car insurance keep going up?
Even after studying hard for knowing in details about insurance, it is a topic that is very tough to understand. There are a lot of factors that affects the car insurance rates and that is why people keep on worrying about the increase in their insurance rates.
Car Insurance- based on unknown risk
When you have the query in your mind that why does my car insurance keep going up, have you ever thought of the different incidents that are covered under the insurance? It does not only relate to the body damage of the car but many more things like bodily injury, property damage, medical expenses, loss of income, loss of use and so on.
Now, when you take the insurance, your insurer is not sure of the type of loss that will be faced by you neither they give you something in return at that moment. They cover your risk to ensure that if any incident occurs they are there to support you till the amount of your coverage. Car insurance is not like buying something which you get the moment you pay! In car insurance you pay the premium for some unseen loses and it is not possible for the insurer to know how much the loss will be!
So now explore why your car insurance is going up although you didn’t had any claim.
Reasons that leads to increase in car insurance rates
• The credit score of the insured affects the rate of car insurance. If you have a poor credit score then there are chances that the car insurance will go up. Moreover, you also need to confirm that the auto insurance has not lapsed.
• Even your driving history and habits will affect the rate of car insurance. If you have been cited for speeding, for moving violations or had DUI charges then there are high chances that your car insurance will increase.
• Sometimes you may add drivers in your insurance policy. It is another cause of increase in car insurance rates, and if they are teenagers then the auto insurance will surge more.
• If the crime rate of your locality suddenly increases the car insurance rates will also increase over the years. This is because the insurer will then be bearing more risk of theft or damage of your car. Hence, they will try to recover it.
If you are worried about the increase in car insurance rates, then you can simple try to keep them stable. For this you do not have to work hard, just be honest with the details that you provide to the car insurance company. Also make sure that you drive safely and are not in a hurry.
Check out my other guide on What To Do With A Totaled Car And No Insurance To Cover It Up and Does American Express Cover Rental Car Insurance