If the price you pay for auto insurance in Antioch, CA goes up every year, you are not alone. Even when you haven’t filed a claim, been in an accident, or logged any traffic violations, it’s possible that your auto insurance could increase every year. Of course, even seemingly small changes in some of your individual risk factors can potentially result in a higher premium. While every insurer calculates their premiums differently, and there doesn’t seem to a standard formula, it’s easy to feel baffled at why your costs are increasing. There are many reasons for auto insurance premiums rising. Here are just a few you should know.
Why Your Auto Insurance Premiums May Rise
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 drives 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.
Your location has changed.
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.
These are just some of the reasons why your auto insurance premiums may have risen recently. If you are unsure of your coverage or costs, talk to your insurance agent. Do you have any questions when it comes to your auto insurance policy and repairing the scratch on it? Call the professionals at Jack Stone Insurance Agency today to get started on quality coverage you can count on.