Why Would Car Insurance Increase?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Whenever an insurance company pays out more in claims than it receives in premiums it will probably file with the state insurance commissioner for a rate increase.  These increases are generally broken down by location so that the resulting rate will reflect the company’s experience in that area.  On an individual level the rate for an auto policy will increase if there is an inexperienced driver assigned to the car.  It will also increase if there is an accident or violation point assessed to the car.  It will also increase if the policy no longer qualifies for a discount previously given.  In California it will increase if the annual mileage on the car increases.
    Answered on May 5, 2014
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