Why Do My Insurance Rates Keep Going Up In Arizona?
Why do my rates keep going up? My cars are getting older, but every time I get my renewal, my rates are going up. What’s up with that? I hear your frustration. I get this question every day. I have a bit of information for you that will hopefully help you understand a little bit about what’s going on. The first thing, remember insurance is a pool. There’s a big pool of people, all the drivers out there on the road that are paying into this pool. And unfortunately, all the good drivers like you who have never had an accident and who have never had a ticket, you are paying for all the bad drivers over here who are constantly getting into accidents and costing the insurance company money. Like it or not, that’s what insurance is. The good people over here paying for the bad people over here. That’s how insurance works.
The second thing, there are hundreds of different pricing points when it comes to rating your insurance policy. Even though your cars are getting older, well, there’s things like all the bad drivers that are getting into accidents, that’s raising your rate. There’s things like your credit, where you live, down to the very home, not just your zip code, but down to the very street and the very home, the car you drive and how expensive it is to repair. There are hundreds and hundreds of different factors that go into your insurance policy.
Is There Good News?
Here’s some good news. The market, it looks like it’s hardening and those prices or those premiums are going to be leveling out. I would guess next time you get your renewal, the price is going to stay about the same. It probably won’t go down, but it probably won’t go up either. That’s the good news. The market has leveled out or it should be leveling out and you should stop seeing those premiums increase.
Best Advice For Lowering Rates?
And then here’s my last bit of advice and you’ll always hear me say it. Use a broker. That way when your rates do go up, you have options. You call your broker, shoot your broker an email. Ask them to shop your policy around and see if there’s any better companies out there that have better prices. If you’re stuck with one company, you have no options so you just keep paying those higher rates. If you work with a brokerage, well, they can shop for you and at least you know you’re getting the best rate out there.