Why Does the cost of my car insurance continue to increase even though my car is older?

Why does the cost of my vehicle insurance continue to increase even though my automobile is becoming older? This is a frequently asked question by numerous of our clients at Cribb Insurance Group, and we would like to address it from a few different angles.

To begin with, though it is labeled as automobile insurance, it insures much more than simply your vehicle. Technically, it should be referred to as “auto-owners” insurance, comparable to how home insurance is truly known as “home owners insurance.”

It is crucial to comprehend that there are many factors that contribute to insurance premiums, and with automobile insurance, it is no exception.

The insurance company is primarily concerned with the possibility of you colliding with someone and causing bodily harm, or even death, to them or yourself. A vehicle is a physical object that can be replaced, whereas a human life cannot.

When was the last instance that you reviewed your automobile insurance policy? If you inspect it, you will discover that there are numerous distinct coverages on your automobile policy.

Bodily injury Property damage Uninsured motorist Underinsured motorist Medical Payments Loss of Income Funeral Expense Loss of use Rental Reimbursement

All of these are things that you are insured for on your automobile policy. How many of them pertain to your car?


How many of them have a corresponding price next to them on your policy?

Every single one of them.

Your automobile is not the only item for which you are being billed on your policy. This is due to the fact that automobile insurance covers far more significant things than just your car, as mentioned earlier.

To put it another way: your vehicle insurance rate is not solely determined by your car.

You are not the only individual being insured by your insurance company. You are one among a multitude of other individuals, with varying characteristics and risk profiles, including fish, sharks, and sea creatures.

Insurance is about distributing costs across a large group of individuals (risk pool), with each individual paying their fair share. This risk pool is constantly changing, and is influenced by a plethora of variables, including the overall economic climate.

This implies that you are sharing the cost with millions of other people, many of whom may have a poor loss history and/or credit score.

However, this is the essence of insurance: sharing the cost.

The next time your automobile insurance rates increase, take a step back and assess the entire picture. Make certain that you are examining all of the coverages and corresponding rates.

We hope this information is helpful! If you would like to learn more about automobile insurance, be sure to visit our dedicated page on the subject.

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