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:


pen paper and inkwell


cat break through


Taking The Mystery Out Of Long-Term Care Insurance

Here's the good news: with improvements in medical technology and... Read More

Health Savings Accounts (HSA): Do I Still Submit My Bills to Insurance When Using HSA Money?

The Health Savings Account (HSA) is becoming well-known as an... Read More

Health Insurance Options for Entrepreneurs

One of the most important benefits employed people enjoy is... Read More

Bankers Long Term Care Insurance

How many times have you seen people whose life was... Read More

Health Savings Account (HSA): What Happens to it When I Retire?

The Health Savings Account (HSA) is a great tool that... Read More

Everybody Wants The Best Term Life Insurance Quote

The information you need about the best term life insurance... Read More

Types of Life Insurance

There are different types of life insurance policies available. Shop... Read More

About Accidental Death Dismemberment Insurance Quote

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

Life Insurance Without Life Value: Why Young People Are Snubbing Financial Advice

This article is written by a 27 year old female... Read More

Finding Life Insurance Quotes For Adult Children

Shopping for life insurance quotes for adult children isn't any... Read More

Car Insurance Monitoring for Discounted Insurance Rates - Privacy Devouring Monster Eating Us One Bi

For a price, would you let car insurer along for... Read More

Travel Insurance Might Be Just What You Need!

Travel insurance is something that many people haven't considered. Sure,... Read More

The Life Insurance Policy and What You Need to Know Before You Buy

Are you looking to buy a life insurance policy? Well,... Read More

Life Insurance Settlement

A new financial tool is now available for senior citizens.... Read More

Affordable Health Insurance - Health Insurance For The Self Employed

One of the things that is important to consider when... Read More

The Life Insurance Policy and Its Best Kept Secret

Do you love someone deeply enough to spend your hard... Read More

Insurance in Northern Ireland: Historic Difficulties

No doubt most readers will have heard of the Northern... Read More

Term Life And Whole Life Insurance

Which type of policy is best for you, term or... Read More

Health Insurance Providers Online - Benefits to Applying Online

Health insurance providers are going online to find new customers.... Read More

Consumer Driven Health Plans [ CDHP ]

Do you know that skyrocketing health care costs have been... Read More

Tips For Lowering Your Auto Insurance Quote

Do you have many claims? If so, you should do... Read More

All Auto Insurance is Not Created Equal!

Contrary to what you may have heard all auto insurance... Read More

The Ups and Downs of Temporary Health Insurance

If you're a recent college graduate, or in between jobs,... Read More

Online Insurance: The End of the High Street Broker?

When I was a lad, some 25 years ago, the... Read More

Independent Insurance Agents Unite! Insurance and Financial Discussion Forums are all the Rage

The online discussion forum has emerged as the medium of... Read More

Why Should You Purchase Your Auto Insurance Online?

If you're interested in slashing your auto insurance bill in... Read More

Do Discount Fees for Medical Service Programs Really Work?

Having a health insurance policy provides a great sense of... Read More

Insights Into Your Med-Pay Insurance Coverage

While Legal Romantics would like to characterize the trial of... Read More

Finding Auto Insurance Comprehensive Coverage

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

Eleven Money-Saving Auto Insurance Tips for Senior Drivers

Following a few simple tips and taking these measures will... Read More

Is Your Auto Insurance Company Rated?

Several national rating institutions rate insurance companies. Do coverages, rates,... Read More

What is Travel Insurance?

Travel Insurance is designed to protect your health, belongings, and... 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