I’m a good driver with a clean record. Why do my insurance premiums keep rising?
The short answer is that that’s how insurance works. In technical terms, auto insurance premiums increase based on the countrywide or statewide pool of losses that the insurer experiences. The losses experienced by a few policyholders within the insurer’s group of customers are paid for by all policyholders within the group. Other reasons for rising insurance costs include the rising costs to settle losses, such as vehicles repair costs and medical expenses. The increasing number of lawsuits also adds to insurer rate increases. Still, your own good driving record can help you control insurance costs.
Related Questions
- Other than my driving record and type of car, what other factors do insurance companies use to determine my premiums? Do all insurance companies look at the same things?
- I’m interested in Good Sam VIP, but my current insurance doesn’t expire for several months. Do I have to wait till then?
- I’m a good driver with a clean record. Why do my insurance premiums keep rising?
