Why Does My Auto Insurance Rate Keep Increasing???
Auto Insurance policies renew every 6 months or every year and usually they increase by some amount. Some policies increase more than others for many different reasons. Below are some of the reasons you may see a jump in premium at your renewal.
· A listed driver was involved in an at fault or not at fault accident.
· A listed driver got a traffic violation such as a speeding ticket.
· An insurance claim was turned in for a broken windshield or other damage done to a listed vehicle.
Insurance premiums are pooled together and paid out as covered claims arise up to your policy limits. If your insurance company has paid out a lot of the pooled money, they may go to the Insurance Commissioner and ask for a rate increase so that they can refill the pool to pay out future claims. The Insurance Commissioner takes a lot of things into consideration before allowing the rate increase and can deny or approve the percentage of rate increase.
Another reason auto insurance rates are increasing is because the insurance pools are running out faster due to the cost to repair a vehicle. Most newer vehicles have censors just about everywhere on the body of the car including the windshield. Because of the censors the cost to repair is much higher than it used to be. Even though we do not all have the newer censored cars, we are all still sharing the same pool of money, so we are all affected. Along with repairs being more expensive, repair labor costs have gone up as well. In 1988 car maintenance that cost $500 would be $1304.50 today in 2021.
Here at Angle Agency we try to look into rate increases and 1. Find out why the rate increased happened and 2. Explain it to our insured as best we can. It is our goal to help you understand your insurance so that you know what you are paying for.