Why Would My Auto Insurance Go Up?

1. 

   14231 POINTS

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   Tom Sheehan

   Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482

   Boy there are any number of reasons that I can offer to illustrate why our car insurance, or any insurance for that matter, may go up, or down for that matter.  Major factors in pricing usually include one's age, drivng experience, driving history, claims history, etc.  You may pay more for car insurance in certain areas  of the country than others based upon population, company experience within those territories etc.  Naturally another major factor is the year, make model and type of car that you drive and insure.  Finally, over the years, it has become common and accepted to include one's credit history among the many factors that a company uses in order to consider and properly price a car insurance policy.

   Answered on December 10, 2013

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2. 

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   Jack Heller

   Owner, Insurance Browser,

   You can expect your insurance to go up for a variety of reasons. perhaps the most common is the fact the a carrier has filed and is acting upon a rate increase in your state. While individual risk characteristics of your household such as number of drivers, age of drivers, driving experience and vehicle characteristics can influence the price, insurers are usually operating with the  law of large numbers in the basis for taking rate changes. If you look at the book of business that an insurer has you will see that it is made up of exposures that are in aggregate different form one state to the next. For example in areas where there is a propensity for flood then insurers will want a higher comprehensive premium then in states where this is not a widespread issue. So insurers, if they are national in scope are operating within the jurisdiction of 50 different insurance departments. Some jurisdiction allow pricing decisions to be made primarily by the carriers. Other states require prior approval of changes to rate levels. As as costs go up for fixing people ( bodily injury ) or fixing cars( property damage), then carriers file rate changes in the various states. So part of the answer has to be that you will see rate increase often without any change to your own circumstances.

   Answered on December 12, 2013

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