In general, the cost of your car insurance can increase if you have made a claim on your coverage in cases of car accidents. Nevertheless, There are circumstances where the cost of your auto insurance can go up even if you haven’t filed a claim.
This is because car insurance prices are made up of several factorswhich can be divided between those that are the direct responsibility of the insured driver and those that are beyond their control.
At SoloDinero we explain why your car insurance can go up in the United States even if you haven’t made any claims.
Why can my car insurance go up?
Among the factors that can increase the price of the policy that are the direct responsibility of the insured driver, actions such as add another car to the insurance policy, or add a teen driver to the policy. These coverages necessarily imply that insurance companies perceive a greater risk in maintaining your auto insurancetherefore, to compensate for said risk, they may decide to increase the cost of the policy.
On the other hand, within the factors that can raise the price of the policy that are not the direct responsibility of the insured driver, macro-statistical elements can be found, such as, for example, the hypothetical increase in the accident rate in the area where the insured driver lives.
According to the Insurance Information Institute (III), this factor can cause drivers in metropolitan areas with more intense traffic to pay more for their car insurance than drivers in semi-rural areas or far from the urban core.
The idea behind this reasoning is: if there are more vehicles passing by, the greater the chance of an accident occurring that requires drivers to make claims to their insurance companies.
Likewise, a local increase in the speed limit is another circumstance that could cause your car insurance to go up, since speed is the factor that contributes, with the greatest impact, in vehicle accidents.
What other reason could there be for my auto insurance to go up?
Another trend that may have contributed to the increase in auto insurance is the decline in the unemployment rate. According to statistics from the Department of Labor Statistics (BLS), unemployment fell to 3.5% during the month of July with the creation of 528,000 jobs. This unemployment rate is one of the lowest in the last fifty years.
The apparently good news about the strength of the US labor market is not so good for auto insurance companies, which see in this economic indicator a greater percentage of the population that mobilizes, with their vehicles, to their work spacesincreasing the chances of accidents occurring.
On top of that, the progressive increase in wages —a phenomenon that was also registered by the BLS in July— has made insurance companies evaluate the possibility that American consumers acquire increasingly expensive vehicles, with repair costs Taller. This expectation also affects the price of auto insurance.
Finally, the very existence of a significant population that lacks car insurance (estimated at 28 million by 2021, according to MoneyGeek, a figure that has been growing over the years) is also another factor that makes car insurance more expensive. , because it increases the risk of accidents with people who do not have any type of coverageputting other drivers at financial risk.
With year-on-year inflation of 8.5% in the month of July, the increase in auto insurance prices can be a difficulty for more than one consumer in the United States.
Therefore, it is advisable to apply strategies that allow you to save on the cost of this service, How to request discounts from your insurance company or reduce, as far as possible, the mileage of your vehicle.
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