Will my Car Insurance Premium Increase Each Year

Will my Car Insurance Premium Increase Each Year

  • Published: Jan 01, 2020

The auto and the car insurance industry faces rising costs for repairs and damages done to cars, payment for medical and health bills of those that are injured in the accidents as well as expensive lawsuits with the jury been in favor of those that seek the damages.

Cars are safer than they were a few years ago
Though the cars that are been manufactured have better safety records, the drivers are better trained and observe safety precautions and a number of safety devices that are been installed decrease the chances of mishaps. Car insurance frauds are still rampant and especially so in a select few states. In fact, in states such as Massachusetts, Florida and California, the car insurance rates increase each year due to car theft and car insurance frauds.

Claim values are rising each year
Even with fewer car insurance owners filing claims, the value of the claims is still very high. In fact, it costs more to repair the damaged cars and the prices are escalating each year. One of the main reasons for this may be the rise in the purchase of SUV or sports utility vehicles that are been bought by many. In high-speed crashes, the damages to the cars are immense and this makes the rates for the car insurance premium increase for the following year.

So to answer the question “Will my car insurance increase each year”? The answer is pretty much “yes”. More so if you own SUV vehicles and have a claims history or have just had an accident. Older cars and cars that are deemed as safer cars won’t see their car insurance premium rise as much. The costs will also increase for increased hospitalization, medical care ad legal costs including lawsuits.

Get discounts
If you are taking the car insurance from the same company and have no claims history, the discounts given by the car insurance company may reverse the increase in the premium rates. However, if you have made too many changes to your policy or have recently changed your address or got another car, the car insurance rates are bound to change and may as well increase.

Driving record affects your premium
Of course, your driving record is one of the major reasons for the increase in your car insurance premium rates. It’s important that you look at the comparison of the car insurance rates and then purchase the car insurance that serves you the best.



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