My Insurance Premiums went up! What gives?
Drivers who are responsible are proud of their faultless driving records. If you are the type of person who drives carefully, and defensively, you are less likely to have been involved in a car accident. However, if you have noticed that your car insurance premium has recently increased, calling your insurance company would be the first step to take. You can find out if there have been any changes to justify the premium increase. It is possible that the insurance company has received information that could have affected your car insurance premiums, although you have not been involved in an accident.
A new car means new premiums
Your rates may go up if you have purchased a newer car. Even though they tend to be more reliable, the fact is that a newer car is generally more costly to repair after an accident. Taking out a loan to finance a new car will also cause the rates to increase, as most insurance companies require full coverage on a car that is financed. If your old car was not financed, and you only carried minimal coverage, this will seem like a large jump in price.
The term “actuary’ is probably unfamiliar to most people. An actuary is a statistician who determines the premiums for insurances, including car insurance. To do this, the actuary studies data on a number of different factors such as the ages of drivers, conditions of various roads and highways, varieties of cars on the road, information concerning accidents, and many other things that may not seem important to the average person.
The actuary will use this data to come up with an insurance industry wide standard of pricing. If you live in an area that an actuary has determined should pay a higher rate, you have little choice, even if you have never had an accident, or a traffic ticket. Make certain your information is current when you get in touch with your insurance company.
It may be possible that your increased rates. resulted from a reassessment of some data by an actuary.
If your premiums have increased and you don’t know why, you should check with your insurer and at the end of the day, it is up to you to determine if you want to change your insurance company.
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Understanding Insurance

