clock October 28, 2014 comments No Comments flowchart Automobile InsuranceOur Blog tag

We hear this question time and time again. Many people assume that insuring a car will get cheaper as years pass and the vehicle gets older. Unfortunately, this is not usually the case and your insurance premium may not go down every year.

Here are the main reasons why:Missouri-Car-Insurance-Rates

-Liability Coverage has nothing to do with age of car
Many coverages on an auto insurance policy have nothing to do with the age of the vehicle. Liability, medical payments and uninsured motorist coverages make up a major bulk of the premium on an insurance policy, and the factors that affect the rates for these coverages are not related to the age of the vehicle. Whether you drive a 1990 Ford Tempo or a 2014 BMW, you can still cause the same amount of damages or injuries to someone else, regardless of how old the car that you are driving happens to be. Therefore, insurance companies consider factors such as the age of the driver, driving record, and the territory where the car is driven and weigh them far more heavily when determining liability rates on an insurance policy.

-Car Repair Costs are Increasing
If you have recently taken your car to get new brakes, or have any other issue fixed, you probably have realized that repair costs have increased drastically. When an insurance company promises to fix your vehicle in the event of an accident, the insurance company takes into consideration the current costs to repair that vehicle.

If you have any questions about your car insurance premium, give us a call at (401) 723-8510 or visit us online! If you feel that your premium is too expensive, we will review your policy and see if there are any discounts you qualify for, or if another company will suit your wallet better.

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