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Why did my auto insurance go up? | Michigan Auto Insurance

posted Dec 7, 2016, 12:37 PM by Jason Grubbs   [ updated Dec 8, 2016, 1:05 PM ]
One of the most common questions people ask is "Why did my auto insurance go up?"

It's an understandable question - particularly if your car is getting older and you haven't filed any claims.





Michigan Auto Insurance Increases


The unfortunate reality is, over time, auto insurance rates have - and will continue - to increase.  The reason being the cost to repair cars, care for injured individuals, repair damaged property, and settle liability claims for auto accidents has also been steadily increasing.

More recently a stronger economy and lower gas costs have resulted in people driving more and contributed to increasing accident rates.  Incidents of distracted driving has also been on the rise and affecting accident rates.

It's important to remember insurance is based on a concept of sharing risk: stated more bluntly, the many pay for the losses of the few.  When overall claim costs increase, even if you've maintained a flawless driving record and haven't filed any claims, your rates will gradually increase.

The most important steps you can take to keep premium increases to a minimum are to maintain a good driving and credit history.  Doing so indicates to insurance companies you're likely to be a stable, lower-risk individual to insure and they'll reward you with their best rates.
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