It’s a common occurrence: your car insurance policy is up for renewal and you’re hoping for good news. Instead, you’re hit with a higher rate. Why? After all, you’ve been a safe driver.
When the cost of car insurance goes up during renewal, the increase can feel unjustified and unfair. If you’re wondering why your car insurance keeps going up, you may be relieved to hear that it’s not just plain cruelty.
Read on to learn about why rates rise– and what you can do about it.
What Causes Rates To Rise?
A clean driving record isn’t always enough to keep your car insurance rate low. There are many factors out of your own control that have an effect on rates.
Rising medical costs around the country are one such factor. Every state has a minimum required level of bodily injury liability coverage. This coverage is the max amount your insurance company pays for medical costs in the event of a car accident.
As medical costs go up, so must the amount car insurance companies request to keep their bottom line.
In similar fashion, the rising cost of labor in the United States is also contributing to a rise in car insurance rates. States require drivers to carry property damage liability on their insurance policies– signifying the amount that your insurance company pays for damage done to another vehicle.
As the cost of car repair continues to rise due to new technologies, so must car insurance rates.
Outside of these factors, the bottom line is just that more people are driving and getting into accidents. Automobile use has risen steadily since the financial crisis of 2007, coinciding with an increase in accidents and claims on insurance companies.
To keep up with this increase in claims, companies have had to increase their rates, even on their safer drivers.
What To Do If Car Insurance Keeps Going Up
No one wants to pay more money than they feel like is right. There are a few things you can try to do to combat high insurance rates, outside of driving safe.
Bundling multiple insurance policies from one company is an easy way to score a big discount on insurance. If you bundle home and car insurance, for example, you could save up to twenty percent on your rate.
Equipping your vehicle with extra safety features may also make you less likely to see additional rate hikes from an insurance company. Anti-theft devices, dash cams, stability controls and more all help to convince an insurance company that you’ll have a lower chance of making a claim.
All in all, if you’re unhappy with the way your car insurance company is treating you, you shouldn’t be afraid to shop around. Insurance companies assume that their customers will accept a nominal fee increase to avoid the pain of finding a new company– don’t be afraid to compare quotes and see what other insurance companies may be offering.
Handling Car Insurance Rates
It can be frustrating to find that your car insurance keeps going up upon renewal, but understanding the rationale behind the action can sometimes make the pill easier to swallow.
If you’re looking for another car insurance company, feel free to contact us anytime for a quote. We want you and your family and your property protected.
