Are Car Insurance Rates Going Up On Average Every Year?
Q: Are car insurance rates going up on average every year?
AIS Answer: On average, pretty much everything in the financial sector increases over time. However, this doesn’t mean that rates are going up for specific individuals.
When vehicles cost more to make and more to purchase, they’ll undoubtedly cost more to insure. With an auto insurance premium you’re paying for up to date market costs. Even though there are so many factors that go into auto insurance premiums, you can always count on the costs of products and services to increase on average year over year - and with it, the cost to insure.
Going back to an individuals rate increase. Seeing a dramatic rate increase year over year won’t always hold true. Sure, on an average you’ll see the prices of products and services rising, but, as an individual you may see your rates decline. Your individual rates are not tied to an economy as much as it is tied to your risk factor. If you’re a safe driver with no accidents or tickets, then it wouldn’t be necessary to raise your insurance rates without a valid reason. It’s possible that an insurance company may have experienced heavy losses in certain sectors and are “spreading” out the cost across their customer base, but, safe drivers will usually see a more steady rate that actually declines over time.
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car insurance rates are always going up. Even if they go down on average, it doesn’t mean it’s going to go down for you.