Drivers seem to have one big worry all the time. 5Ws – why what when which and where will their auto insurance rates shoot up and by how much? If you are plagued with this worry as well, there are millions of Americans in the same boat – if that is any consolation!
Insurers need to compensate their outgoings on claims with increasing rates. Such a growth of auto insurance costs (30 %) last occurred between 1989 and 1993. Car insurance costs grew 21.5 % since 2012. This was inevitable as auto insurance industry was hit by decline in profit margins in 2010. What does this mean?
An unpleasant, unwanted surprise!
Polite drivers with clean records, going exactly by the book will not be spared. Auto insurance premiums since 2012 are steadily on the rise. There is nothing you can do because insurance rates and prices are going up across all states for all drivers. Those with spotless good driving record and more importantly no claims either will not get a chance to shirk off this increase in their premiums. Yes sir, insurers especially car insurance carriers are facing a profit challenge as never before. Maintaining profits is a matter of corporate survival. Consumers end up paying for it, literally.
Some Excuses Auto Insurance Companies Are Looking For To Raise Premiums
You are single
- Your friend wrecks your car
- You start driving more miles
- You have low or poor credit ratings
- You hit the big 5-0
You have also given insurers a valid excuse to increase your premiums. No doubt about it. No carping and no whining. Car insurance accident coverage is like a boxing match delivering a one-two punch. Once you cover all details of your unfortunate accident, a higher premium gives you a second punch.
Cautious drivers may open their bills to a surprise.
You may be happy or sad at turning 50, but one thing you may not feel smiling about is an increased premium. Going downhill after 50, you want to be careful in keeping expenses and expenditures under control. In spite of statistics, bottom line is it may cost you if you are an over-50 driver.
Low or poor credit ratings are something of an enigma. You never know when they will hit you below the belt. A less reliable customer is more prone to neglect car insurance premiums as well. Hence the precaution of increased rates. Maybe you will leave them for cheaper alternatives!
Driving more miles translates into more time on road with higher risks. This may be insurer-specific, which you need to check out.