You have probably faced a situation when you were expecting a renewal discount after prolonging your car insurance policy but instead had the premiums increased. How could this happen? Isn’t it supposed to go down with time? Unfortunately there are several reasons behind the raise of insurance premiums. And one of the main reasons is that the costs of repairing a new car steadily increase each year, and their raise sometimes overlaps the discount you are subjected to. Nowadays it costs much more money to repair a vehicle than it was 5 years ago. But there are also other factors that may contribute to the raise.

During the last couple of years auto insurance costs have seen a very negligible increase and one might ask why so the premiums still tend to rise? The roads seem to become a safer place with more drivers taking special driving courses and cutting down aggressive behavior while driving. Unfortunately, other factors that contribute to auto insurance premiums are on a dramatic raise: health insurance costs and repair services. In some states like Florida, Massachusetts, and New York the significant increase in car theft rates also plays it role in the final premium you’ll have to pay.

The statistics show that during the last couple of years there was a drop in the number of filled out claims handled by auto insurance companies. However, the average cost of such claims has increased because of the increase in the price of the elements comprising such a claim. The cars seem to get more costly damage, which is much more expensive to repair. Some experts say that it’s due to the increased number of specialized sports cars and powerful vehicles driving the highways these days, which tend to get damaged badly in case of an accident.

The medical service costs are also increasing each year and auto insurance companies often have to deal with settling claims involving injuries and hospitalization. And we all know how dramatically have medical service costs increased in the last few years. So auto insurance companies try to keep up with the tendency, which again results in an increase of premiums.

What else can affect your premiums? Well, your driving record is one of the most important sources of sudden increases in your rates. Every ticket received or accident involved will definitely be reflected in your driving record and insurance companies frequently check the records to adjust their premiums.

When moving to another area of residence you can also expect your car insurance rates to be modified. Some areas initially have higher insurance rates (agglomerated urban areas, high car theft rates, etc.) while some will please you with lower premiums (rural areas with less traffic). It is recommended that you check out the auto insurance offers in the area before making the move to avoid unpleasant surprises when settling in a new town or city. And remember that you should always shop around to get the best offers regardless of where you are.