Why do my Auto insurance premiums keep rising?

Why do my Auto insurance premiums keep rising?

I haven’t been in any accidents and have a good driving history.  Why do my rates continue to rise? Just like many other seemingly simple things in life, auto insurance rates are a complicated thing.  The algorithm(s) companies use to calculate rates contain hundreds of data elements that determine your individual rate.  The largest contributors to your rate are: credit score, driving history and age.  Younger and older drivers pay higher premiums for a simple reason…they are involved in more accidents than other groups.

The general rise in rates has been caused by the following environmental factors (which are beyond your control):

  1. Increase in Driving: people are driving further & more often due to the strong economy and low fuel prices
  2. Accident Frequency: distracted driving (cell phone addiction) is causing more accidents
  3. Severity: rising medical costs, more expensive vehicle components (e.g. cameras in rear bumpers) & increased attorney involvement is causing claim settlements to rise

Also, where you live has an impact.  Locations where better driving behavior exists have lower rates.  I advise my clients to purchase the highest limits they can afford (which often means an Umbrella too) because….Music City has lots of distractions: