Simply Explaining Insurance #101- Why does my insurance go up as my car gets older?
I get this question once in awhile in my agency and I think it’s a very valid question. Every coverage in your auto policy comes with a price. The way it works is that the cost to cover your vehicle as it ages, actually does decrease.
It is the liability portion of the policy that continues to increase. As the cost of medical expenses and cost to repair vehicles rise, insurance premiums will follow. These cost increases outpace the decrease in costs on an aging vehicle.
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