Why Does Automobile Insurance go up when I haven’t had any Claims?[VIDEO]

Why have my rates increased but I haven’t been involved in a claim?

Watch the video to learn more:

Here is a transcript of the video:

There is nothing more frustrating than to receive your auto insurance renewal letter only to notice that your insurance premiums have increased for seemingly no reason. Why is that? In this video, I will outline a few reasons why your auto insurance rates might increase even if you haven’t had any claims. 

There are a few factors that will raise your insurance premiums. Mostly it has to do with your background as a driver or with your insurance carrier, according to the Insurance Information Institute, including: 

• Collisions

• A History of Violations

• Cancelling an Associated Policy 

Additionally, a common reason is that from time to time insurance companies across a region will increase their rates across the board. Higher maintenance costs, increased injuries, intoxicated and uninsured drivers, weather events, and more are why your insurance rates may increase. It may have nothing to do with something that you specifically have done but more about how well other people drive in your area. Natural disasters are a great example, let’s say a tornado crushes the Dallas Metroplex. It does lots of damage in Dallas but doesn’t hit El Paso for instance. An insurance company can still be forced to raise their rates evenly throughout the entire state even though El Paso had nothing to do with that tornado. To a normal person this doesn’t seem fair to punish El Paso with higher insurance costs for what happened in Dallas. Unfortunately this is the way insurance works most of the time.

So how do you keep your rates as cheap as possible? A couple of ways to combat increased rates would be to take advantage of all the discounts that your company offers. Common discounts include: 

• Set your policy up on EFT 

• Marriage Discount 

• Paperless Discount 

• Multi-Car Discount 

Another way would be to simply shop around. If you have found yourself in a situation where your auto insurance rates have increased for reasons out of your control give Cheapest Auto Insurance a call! You can simply get a quote online at aautoandhomeinsurance.com or give us a call and let our trained agents assist you today!