Have you received your bill from your auto insurance company recently only to realize that you’re paying more for car insurance now than you ever have? You’re not alone!
Every day millions of people around the world get their auto insurance bills and realize that they are paying $10, $20 or $30 per month for car insurance than they did before.
Reasons For Auto Insurance Rate Increases
What makes auto insurance rates rise? That’s probably one of the most frequently asked questions in the car insurance industry.
People want to know why they’re paying one rate today and a higher rate at the time of policy renewal. Not only that, many are frustrated by what they perceive to be an insurance company simply trying to take advantage of them.
Most of the time auto insurance rate increases are not the result of insurance company greed. The truth is that there are legitimate reasons for raising your premiums. If you understand that, and you know what they are, it’s easier to take when it happens to you.
If you boil it down to its simplest form, rising insurance rates are the result of your insurance company trying to balance its risk-to-reward ratio. In other words, your provider takes the money you pay in premiums and invests it for a profit.
The insurance company is banking on the fact that they can make a profit even if you should file an accident claim. But if conditions change in terms of your car or driving habits, they may need to raise your rates in order to remain profitable.
Get an Auto Insurance Quote!
Are you ready for an auto insurance quote? Contact the Farnsworth Agency today by calling us at (541) 318-8835 or click here to connect with us online!
We’re located in Bend Oregon and can provide you with an auto insurance quote regardless of the make/model or year of your vehicle.
Our company also ensures other vehicles too including commercial vehicles so don’t hesitate to contact us for auto insurance if you want an awesome quote for a wonderful price.