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!

---

Risk Retention Groups RRG

In response to a hard insurance market in the mid... Read More

Entrepreneurs, Fill in the Gaps of Your Homeowners Policy

Business Owners Policies for the Self-EmployedWho needs a business owner's... Read More

Taking The Mystery Out Of Long-Term Care Insurance

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

What You Need to Know About Auto Insurance

Let's be realistic, everyone needs to have auto insurance. Aside... Read More

What Price For Your Health?

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

Finding Life Insurance Quotes For Adult Children

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

Why Boats Are A Pleasure... But You Still Need Boat Insurance

One of the greatest pleasures that a man can have... Read More

The Many Benefits of Travel Protection Plans

Many people purchase insurance thinking I want full coverage and... Read More

Term Life Insurance Help

Life insurance can be a very scary thing. If you... Read More

Insurance or Assurance - Do You Need Reassurance?

Insurance versus assurance: what is the difference?Should you care?Yes!!The world... Read More

The Best Rates on Life Insurance

Finding the best rates on life insurance is not difficult... Read More

Insurance For The Self Employed And Those Seeking Health Insurance

First of all, congratulations on deciding to go out and... Read More

Dont Just Accept Your Car Insurance Renewal Quote

UK car insurance companies make substantial profits every year because... Read More

Home Insurance Terms

Home insurance, or even homeowners insurance, is an insurance policy... Read More

Six Crucial Insurance Claim Possibilities

There are DOZENS of insurance claim possibilities which will increase... Read More

Young Driver Car Insurance

It has become increasingly difficult to get young driver car... Read More

About Accidental Death Dismemberment Insurance Quote

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

Cure The Insurance Blues By Lowering The Cost of Your Premiums

Does the current amount that you pay on your insurance... Read More

Your Cars After-impact Diminished Value

The(ACV)Actual Cash Value Policy DOES NOT insure the property itself... Read More

Finding Term Life Insurance Online

What exactly is Term Life Insurance?Term life is a form... Read More

Should I Buy Rental Car Insurance?

Rental car agencies have a menu of insurance policies they... Read More

Life Settlement: Towards A Free Market for Life Insurance

The Life Settlement market is all about providing due access... Read More

Need A Car Insurance Comparison? Dont Have Time?

If you decide not to do a car insurance comparison... Read More

Health Insurance Options for Entrepreneurs

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

7 Tips Toward Helping You Reduce Your Insurance Costs

Not a year goes by that insurance rates go up.... Read More

Self Employed Health Insurance - Tips For Getting Cheap Health Insurance When Youre Self Employed

If you're self-employed and facing high health insurance bills, there... Read More

Mortgage Life Insurance

Owning a home is a dream for most of us,... Read More

Health Insurance Quotes Online - Tips On Finding a Good Provider

Since 2001, major health insurance providers have been allowing consumers... Read More

Long-Term Care Insurance: Eldercare Solution

When I suddenly had to become a fulltime caregiver to... Read More

Origin Of Long Term Care Insurance

In the early 1980's Medicare started using a system called... Read More

MSA or HSA: Can I Keep My MSA Or Do I Need to Convert it into an HSA?

The Medical Savings Account (MSA) is an older form of... Read More

Finding Auto Insurance Comprehensive Coverage

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

UK Young Driver Motor Insurance - Build Your Own No Claims Bonus or Insure through Your Parents

For may young drivers, affording the costs of motor insurance... Read More