Why Auto Insurance Rates Are Always Increasing?


If you cannot seem to understand why auto insurance rates are always ever increasing, you are not alone. Like most people paying expensive insurance costs, it is sometimes hard to bear on if such rates are necessary and why insurers are doing it anyway.

Do you feel that auto insurance companies are sometimes unfair to you? Simply because they are allowing some policyholders to pay cheaper insurance rates, even though they have the same coverage as you do. Perhaps what you are thinking right now is to stop paying for the said service and call it over.

The question is during that time where you are in the process of purchasing your insurance coverage, did you spend time to look for insurance quotes from other insurers? Note that no two insurance companies are created equal and some people are known to pay more for the same type of policy.

Now, the question is why this is so?

The vehicle you are insuring. More often than not, but the type of vehicle that you are going to insure is a strong factor that influences the rate of your insurance premiums. A 15-year-old car is going to be a lot cheaper than insuring a sports car. However, the value of the car is only one of the many variables that insurers need to find out. For instance, the car’s safety features, availability of the spare parts, and the frequency of burglary, would also affect the premium outcome. With that in mind, it is therefore important to ask your insurance provider how much it will cost for a certain car model rather than assuming its value.

Car Upgrades. There is nothing wrong if you pimp your car. But remember that not all customizations are taken as positive indicators, which will then help you reduce your premium costs.  For example, installing airbags, antitheft devices, monitoring systems or anti-lock braking systems will definitely help in reducing your existing insurance expenses. On the other hand, if you are upgrading your stereo system, changing the tires sizes, chrome details, and others may cause your insurance premiums to surge up. If you are trying to save money on your auto insurance, it is best to invest on gadgets that will help protect your vehicle from perpetrators rather than doing otherwise.

Other possible modifications. Aside from changing your car’s paint and other details into something unique, it is also possible that you are going to be hammered with the higher rates if you are trying to change or increase the engine’s performance. In fact, many policyholders who have done this in the past were caught completely by surprise with the said increase.

Insurance companies will increase the premiums for two possible reasons; first, is due to the cost of repairs needed to get the vehicle back on the road, and the chances of getting into an accident due to these modifications, especially those that alter the car’s original performance.

Your mileage consumption. Again, common sense would tell us that the more you spend time on the road, the higher the chances of getting into an accident. People who travel great distances usually end up paying expensive premiums. There are instances that, even if you are within the so-called normal range, you could still end up paying higher rates. A quick remedy would be to use the public transportation system or occasional carpooling.