Blog 2: Why do car insurance prices go up? — CAR AERO SPEED
bySafa Noor-July 26, 2023
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Why do car insurance prices go up?
There are a number of variables that can influence your price with any insurance provider, whether it be at renewal or when you make a change. For instance, if you purchase a newer vehicle, are involved in accidents, or as a result of broader economic factors, your auto insurance rates may increase. Continue reading for additional details on the variables that could affect the cost of your auto insurance.
Variations in insurance costs are caused by factors outside your control.
Added claims
In essence, insurance is a group of people sharing a fund so that if one of them experiences a covered loss, they are all covered. Sometimes you pay more into the pool than you get out since auto accidents, repair bills, and other occurrences are unexpected. Sometimes you put in more than you take out.
Rates are set up to help make sure you have access to money when you need it. When statistics indicate that more claims could be paid out than are being paid in, insurance firms may raise premiums.
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