Why Do My Auto Insurance Rates Keep Going Up? | The Shepherd ...

Have you had your auto insurance rates increase even though you have a clean driving record? This is an extremely frustrating phenomenon, but it is bound to happen when the economy fluctuates and functions the way it does. We have some tips that could help you obtain those cheap car insurance rates you wish you had.

• You may not think about it, but if you change cars, especially if you replace an older car for a newer one, your rates will go up. Even though everything about you is the same, a new car costs more to repair and replace than
  an older vehicle. If you have a new car with a loan, then you are required to have complete comprehensive and collision coverage on the vehicle. If you had only liability coverage on an older car, then the increase between liability and complete insurance can be shocking.
• High-powered statisticians called actuaries set insurance rates. Actuaries crunch lots of data about accidents, drivers, road conditions in states, tickets, types of cars, color of cars, ages of drivers and many other factors you may not even consider as having an impact on insurance rates. But the actuaries figure out how much each of these factors affects the cost of insuring a car.

If the costs for your age group, gender or area of the country go up, then your rates will go up. This applies even if you weren?t a contributor to the higher rates?if your driving record was completely clean, you never speed and you drive only a few miles a day. Still, your rates will go up if the cost of your overall demographic goes up. That?s how insurance actuaries cover the risks. But don?t forget, just because you have cheap car insurance, it doesn?t mean you?re receiving the proper coverage.

The cost of insurance goes up, even if you are a great driver and never have an accident. While it doesn?t seem fair, it is the way insurance companies keep prices average for everyone.

Author : Sonia Nicolas

Sonia Nicolas is one of the Amazing Advisors here at TSG. When she's not closing sales and servicing clients, she can be found shopping for new handbags, or competing in arm wrestling competitions...ok, we're obviously kidding about the handbags ;)

Source: http://theshepherdgroup.ca/why-do-my-auto-insurance-rates-keep-going-up/

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