Many times it happens that your insurance rates go up despite any accident. If this happens then you get very frustrated. But it happens due to the economic functions. Whenever you change a car you must think of the increase in the insurance rates that are going to happen as a result of this. If you replace an old car with a new one then your insurance rates are going to increase. Even though everything is same but the insurance rates are going to increase because a new car costs more to repair and replace then the older cars. And if you take a new car on the loan then you will have to purchase a complete comprehensive and collision coverage on the vehicle. If you were having only liability insurance on your older car then the thing are going to be different because the difference between the liability insurance and the complete insurance is going to be shocking.
The insurance rates are mostly set up by high powered statisticians who are called actuaries. These actuaries crunch lots of data about accidents, drivers, road conditions in states, tickets, types of cars, color of cars, ages of drivers and many other factors you may not even consider as having an impact on insurance rates. You may not even knowing how these factors are going to effect the insurance rates but the actuaries figure out how much each of these factors have affected the insurance rates.
Then if the cost of your age group, gender or area of the country go up then the cost of your insurance is surely going to increase. This means that even if you have never met with an accident, your driving records are clean, you never speed up, and you drive only a few miles a day your insurance rates are going to increase. They will increase as a result of demographic increase. This is how the risks are covered by the insurance actuaries.
You are having auto insurance and the part of the insurance covers the bodily injuries and the medical services. Your insurance may be providing medical care to you and those whom you have injured. But as the cost of health care increases and the resources are become scarce the rates of insurance also go up. This increase in the rates of medical facilities is absorbed in the policies so that the medical benefits are paid out as and when needed.
Many of the rates of the auto insurance are linked by the cost of repairs of the car. If ever you get an experience of the repair of the body of your car then you will come to know that even the repair of the simplest part is very expensive. A simple, 3-inch scratch on the door of a car can cost more than $300 to repair, while additional accidents cost even more. This raise in the cost of repairs is absorbed in the premiums as a result of which the rates of insurance are going to increase.
Many a times it happens that the person sues a person who was at fault of the accident and it also sues the insurance companies so that it can get the maximum benefits from the insurance companies. The companies pay the little as possible and sometimes deny the claim that seems to be payable. As the fees of attorney rises the cost of insured rises in turn. Thus the cost of insurance goes up even if you are a very good driver and you have never met with an accident.