Four Reasons Why Auto Insurance Premiums Rise

Oct 22, 2020

Auto Ins

Four Reasons Why Auto Insurance Premiums Rise
Many motorists with auto insurance in Connecticut, CT have noticed that their premiums have been rising as of late. Perhaps you haven’t filed a claim in years or haven’t changed your policy coverage. Either way, you may be wondering why auto insurance premiums rise without your input. To help, we’ve rounded up a few common explanations behind the increase of these premiums that could be affecting your coverage today.

Car parts are getting more expensive to replace.

It seems like most cars on the road today have a digital dashboard, keyless entry systems, and more sophisticated technology inside. Automatic emergency braking, lane detection warning systems, speed limit devices, blind spot, and parking sensors – the list goes on. With the rise of tech inside the vehicle comes higher expenses to repair or replace these systems when a vehicle has been damaged. For example, no longer is a side mirror just a simple replacement, but it needs to be a smart side mirror with blind-spot detection and that collapses when the vehicle is locked. More technology requires higher repair expenses, which drive up auto insurance premiums.

The cost of medical care drives auto insurance increases.

Your vehicle isn’t the only thing covered by car insurance – passengers and drivers are, too. Medical care is a big part of car insurance coverage. As the cost of medical care continues to rise, it triggers changes in auto insurance premiums. Car insurance rates have to adapt to include the rising costs of medical care, meaning that premiums increase even when you haven’t filed a claim. With rising rates of health care expenses, car insurance companies are struggling to keep up with the increasing costs of care. Raising auto insurance premiums is one way to keep costs at bay.

You have moved.

If you have changed your policy in any way, you may find that your premiums change. Whether you move out of the state or down the street from your current location, your auto insurance costs may rise or decrease. This is because insurers associate risk to your zip code. If you move into an area where there are more reported crimes such as theft and vandalism, and a higher frequency of claim filing, you can expect your auto insurance costs to rise.

You got a new job.

During COVID-19, you may have been unlucky enough to be let go. As a result, you had to find a new job and it may be in a different line of employment. Many motorists are surprised to find out that their job impacts their car insurance premiums. For example, if were working as a secretary and are now a delivery driver, you will be spending more time on the road. As a result, the risk of filing a claim increases, which causes your premiums to rise. While you may be tempted to put a low-risk job as your own to secure lower premiums, insurers tend to find out the truth. In some cases, your claim could be denied if you lie on your policy, so it is best to be honest. If you veer too far from your actual occupation, you could be guilty of fraud. These are just a few reasons why your auto insurance premium could have risen. If you are concerned about rising premiums, talk to your insurer. Work with an insurer who can find the right coverage for your vehicle, lifestyle, and driving history. For all of your car insurance needs, contact C.V. Mason Insurance Agency in Bristol, Connecticut. We will work with you to ensure you have the right amount of auto insurance coverage, all at the right price to fit your budget.