Why Do Car Insurance Rates Go Up?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaYour state insurance commissioner is charged with making sure that the auto insurers in your state pay claims. If the insurance company has higher claims than their premium income they must increase future premiums to cover anticipated future losses. The reason that these costs increase is obvious, increased cost of repair, frequency of accidents, and litigation. Your own record can make the company increase the rates on your car.Answered on November 7, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! There are a couple of reasons why your insurance would go up. The first is that your driving record took a hit, maybe through an accident or traffic ticket. Your increased risk as a driver would translate into a higher premium. The other would be the company's desire to maintain its profitability. If they have higher costs, they aren't likely to work at cutting those costs, most often they pass them on to us. I hope that helps, thanks for asking!Answered on November 10, 2014flag this answer
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