Why Auto-Insurance Premiums Go Up Year After Year

Ever wonder why your auto-insurance premium keeps going up year after year? Here are a few factors that are affecting your premium to increase and some of them aren’t even your wrong-doing.

Okay, this one is on you. As you know, if you have a low credit score and/or poor credit history, it typically placed you in the lower tier compared to excellent credit drivers and you can end up paying hundreds more than they ever will.

Another reason your premium goes up is simply the company itself and their cost of doing business. Insurance companies pay out billions of dollars in claims each year. With pay out increasing over generated premium, they need to collect the money they are missing out on from somewhere.

Even if your rates are going up, you tell yourself that you really like the insurance company and want to stay with them for as long as possible. Well, the longer you remain a customer, your premium increases based on the likelihood of you not shopping around for another policy with a different insurer. They think you won’t mind, which puts you in a place of price optimization.

One more reason your premium will continue increasing is because of how cars have evolved. Cars today are becoming more technologically and it is expensive to fix and receive the parts for those cars in particular. They take longer to repair and the body shop is going to make sure the time they are using will be paid for.

With auto-insurance premiums increasing, it makes sense for some buyers to switch to leasing opportunities. Swapalease.com is the largest online lease transfer marketplace. The online marketplace has vehicles and customers in every state in the continental United States and Canada. For more information on finding the best car lease deals or to learn how you can have a successful car lease trade, visit Swapalease.com or contact them at 866-SWAPNOW.