Car Insurance Rate Increase Overland Park Kansas KS
Filed under: Auto Insurance Quotes, Auto Insurance Tips, Insurance Quotes
Reader’s Question:
My driving records are clean and I have not had any accidents or violations but why does my auto insurance company in Overland Park Kansas continue to increase my premium?
Evan
Overland Park, KS
The costs of buying and repairing cars continue to increase throughout the years; reason why auto insurance companies increase the premiums paid by their policyholders. Even if you have an unblemished driving record, your insurance company in Overland Park, Kansas can still increase your rates and those of other drivers to cover costs incurred. Your premium rates will still be affected to offset the higher costs your insurance company pay for accidents involving others who are under the same insurance carrier as you are.
When an auto insurance company increases its premiums, it normally says something about the financial condition of that company. It is a direct reflection of the countrywide or statewide pool of losses that the company may be experiencing. Therefore, the losses of the few within the insurer’s pool of policyholders are paid for by all policyholders within the pool. This is the basis of the concept of insurance and without which no insurance would be available. This does not mean that your own favorable loss experience cannot be recognized since various insurers give numerous discounts to policyholders rewarding their excellent driving records. The other reasons for the increase in the cost of auto insurance are attributable to the costs to settle losses such as the costs to repair vehicles and the medical costs for injured persons which continue to rise. Also, the increase in lawsuits is also a major factor why insurance companies increase premium rates.
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