Why Has My Auto Insurance Premium Increased?

22 Oct Why Has My Auto Insurance Premium Increased?

When you look to see that your auto insurance premium has increased, you may wonder why. If you haven’t filed a claim recently or altered your coverage, you may not understand why you are paying more for your coverage and what caused the change. Several factors play into the way auto insurance premiums are set. To help you understand why you are paying more, read on.

More policyholders are filing claims

Accidents, thefts, and more continue to be a daily occurrence across the nation. With more people filing auto insurance claims, the insurers must find a way to offset the expense. As a result, they raise premiums to account for the amounts paid out for property damage liability, collision, and bodily injury claims. Even if you have not filed a claim recently, others have and that will impact your premium.

Hi-tech causes high repair costs

New vehicles that come equipped with the latest technology are sophisticated and intelligent. Although these vehicles are a dream to drive and generally offer a safer driving experience, they come with a high price tag when repairs or replacements are needed. Cars with blind-spot detection, digital dashboards, lane departure sensors and more cost more to replace than vehicles without this technology. These costs are then passed onto the consumer, including auto insurance carriers.

Medical costs are rising

Health insurance premiums and medical costs are steadily climbing in the U.S. These increases carry over into costs auto insurance companies incur when drivers and passengers are injured in a car accident. Car insurance rates must adapt to include the rising costs of medical care, which means that your premium can increase even when you haven’t filed a claim.

You got a new job.

During COVID-19, you may have been unlucky enough to be let go. As a result, you had to find a new job and it may be in a different line of employment. Many motorists are surprised to find out that their job impacts their car insurance premiums. For example, if you were working as a secretary and are now a delivery driver, you will be spending more time on the road. As a result, the risk of filing a claim increases, which causes your premiums to rise.

While you may be tempted to put a low-risk job as your own to secure lower premiums, insurers tend to find out the truth. In some cases, your claim could be denied if you lie on your policy, so it is best to be honest. If you veer too far from your actual occupation, you could be guilty of fraud.

These are just a few reasons why your auto insurance premium could have risen. If you are concerned about rising premiums, talk to your insurer.

Affordable auto insurance does not have to be hard to find. Coverage should not break the bank, but rather stay in line with your budget. When you need helping securing the right auto insurance for your budget, contact Kevin or Marci at Kevin S Dougherty Insurance. We offer unparalleled auto insurance in Illinois, Wisconsin, and Indiana.