This question typically arises in the context of an insurance consumer questioning if the auto insurance premium will decrease as the insured vehicle ages and therefore decreases in value. Years ago, all things equal, meaning no general across the board rate increase, the physical damage portion of the policy did indeed decrease as the car value decreased. In today's world, with the myriad of rating factors determining an individual auto insurance premium you should no longer expect an annual decrease as the car ages.
Your agent can provide more insight into your specific situation.
CEO, RLI - Ruth Ladas Insurance, LLC, Fort Myers, Florida
Great question. The way auto policies are rated today includes a myriad of factors and that makes it difficult to predict premiums. The factors include the personal details of drivers, including their driving records and their credit reports and the year, make and model of the auto. You may be surprised to find that an "expensive" Lincoln costs less to insure than a "less expensive" compact car. Why? Because little cars are more easily totaled in an accident and total loss claims are more expensive than simple repairs to a heavier vehicle!
In general if there are no changes to all the moving parts, you may expect your rate to be stable and perhaps go down over time if you have no claims.
Another interesting factor is your carrier's position in the local market. For example, in Florida there is a lot of market volatility and carriers come and go in the market. A new carrier may have aggressively low rates as they are eager to write more business and get market share. Going with that carrier may be a good deal for the first year or two, but you may well see big increases at renewal as the carrier adjusts their position in the market.
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Your agent can provide more insight into your specific situation.
In general if there are no changes to all the moving parts, you may expect your rate to be stable and perhaps go down over time if you have no claims.
Another interesting factor is your carrier's position in the local market. For example, in Florida there is a lot of market volatility and carriers come and go in the market. A new carrier may have aggressively low rates as they are eager to write more business and get market share. Going with that carrier may be a good deal for the first year or two, but you may well see big increases at renewal as the carrier adjusts their position in the market.