Do Insurance Premiums Increase Every Year?

Many people ask, "If I am supposed to get a renewal discount, why do my premiums seem to increase with each renewal?" The answer is not always so simple. Each year, new vehicles cost more then they did the previous year. It will probably cost more to fix a damaged vehicle than it did last year, or five years ago when you first bought your current policy. However, in many cases, your renewal premium will be less. Some factors that contribute to decreases in your premiums are straightforward.

According to the Insurance Information Institute (I.I.I.), the cost of auto insurance is expected to rise only 3.5% in 2004, the smallest increase over the last four years. Why? The number of auto accidents is on the decline due to better drivers and safer cars as well as crackdowns on fraud and abuse. However, due to the rising costs for medical care, vehicle repairs and skyrocketing jury awards the potential of price increases remain a problem. Rising automobile theft rates and fraud will keep costs higher for motorists in some states, such as Florida, Massachusetts, and New York.

The projected increase represents a substantial slowdown from 2003 when auto insurance costs rose by 7.8 percent, the I.I.I. observed. The average cost for auto insurance nationwide for 2004 is estimated at $871, an increase of $29 per vehicle from last year.

Unfortunately, even though drivers are filing fewer claims these days, the claims that are filed are costing the insurance companies more than they used to. It is costing more to repair cars as the amount of damage sustained in crashes is up from what it was a few years ago. Some in the industry feel this is due to accidents involving sport utility vehicles.

The cost of medical coverage is also increasing. This year insurers could pay as much as $20 billion in medical claims. Higher costs for hospitalization, medical care, medication and associated legal costs are also to blame.

What can you expect to pay for insurance? In many cases, your renewal discount will offset a rate increase from your company. It can become hard to keep track of increases if you make many changes to your policy. When you move to a new residence or get a newer vehicle as these factors affect the rate you pay. Your driving record is also one of the factors the insurance company uses in determining your rate. Go to http://www.carinsurance.com. Not only will you get the rates of various insurance companies, you will see the A.M. Best rating for each company along side their rates for you personal situation.

Now is the time for your fingers to punch their way to a quick rate analysis and view the ratings at the same time.

Visit http://www.carinsurance.com to Check Out the Lowest Premiums Available!

Jon Register is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.

CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.

Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online...anytime!

In The News:

Powered by Feedzilla



Contact Us Today For Ad Information...

Ebooks, Scripts, Websites, and more...

Cheap Domain Names

Affordable Life Insurance!

So, you've decided to purchase life insurance. Well then, you... Read More

Why Bother With Farmers Auto Insurance?

Farmers auto insurance is a very large insurance company that... Read More

Health Care and Health Insurance Costs Can Be Controlled Through Lifestyle Choices

As you probably know all to well, the cost of... Read More

Global Warming: Why Consumers and Insurers Are Getting Hot Under the Collar Over Life Insurance.

Global warming may have been lurking on our horizon for... Read More

Sleep-At-Night Coverage With A Private Health Insurance ( Affordable Health Insurance )

Health Insurance: a sense of dissatisfactionThe three C's, customization, consumerization... Read More

Terrorism: Acts of Terrorism: When Will Insurance Respond?

Insurance policies provide financial protection in a broad range of... Read More

About Accidental Death Dismemberment Insurance Quote

We don't hear much about getting an accidental death dismemberment... Read More

An Intro To Auto Insurance

Although premiums, policies and prices vary widely, the mandate does... Read More

Car Insurance Online ? Benefits of Applying for Auto Insurance Online

Drivers are applying for auto insurance online not just for... Read More

Finding Auto Insurance Comprehensive Coverage

You can go online to easily find and quote auto... Read More

Poor call centre performances driving motorists online for insurance

In their efforts to cut costs more and more finance... Read More

Travel Insurance Pre-Existing Conditions Coverage - How It Works

What is a Pre-Existing Medical Condition?When a trip cancellation travel... Read More

Life Insurance, the Universe, and Everything

You may have noticed that life insurance is coming back... Read More

Term Life Insurance - A Safeguard for Small Business Owners

Term life insurance can offer protection for a small business... Read More

Buildings Insurance and the Threat of Flood

What is the impact of increased flooding risk in the... Read More

Disability Income Insurance Can Meet All Your Financial Needs

Disability income insurance can cover you in the event of... Read More

Car Insurance Quotes Online ? Why You Should Use the Internet to Find a New Insurance Company

Before the internet, you picked a neighborhood car insurance agent,... Read More

Health Insurance for the Beginner

When it comes to your family, selecting the right health... Read More

How Do I Lower My Auto Insurance Rates?

Since there are many factors that go into determining your... Read More

What Price For Your Health?

How do you put a value good health? For many... Read More

How Do I Lower My Auto Insurance Premiums?

It seems as though the price of everything is on... Read More

Long Term Care and Long Term Care Insurance

A person might need long term care (LTC) if he/she... Read More

Guide to Car Insurance

Here is a useful guide to car insurance. Buying car... Read More

Auto Insurance Primer

What is auto insurance? Auto insurance (or car insurance, motor... Read More

Gain An Advantage Over Your Competition By Controlling The Cost Of Your Health Insurance

As many of us expect, the New Year will bring... Read More