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Do car insurance premiums actually need to go up?

The topic of this article can be quite debatable just as a glass half filled with liquid can also be considered to be half empty. It all depends on the way it is viewed. From the car owners viewpoint it will always be very difficult to accept the increase in premiums that can happen for a variety of reasons, the most common being the car meeting with an accident. Looking at it from the perspective of insurance companies it might sound quite reasonable to charge high premium whenever there is any reports of risk increase like driving conviction from drunken driving. However, keeping aside the justifications, the fact is that there are instances when insurance premiums go up just like ageing people are considered more risky for life coverage and have to shell out more to cover their lives. Let us now see when car insurers make car insurance policies costlier for their customers.



Ageing driver
Celebrating the fiftieth birthday may not be a very happy occasion for those who own cars. This is the time when some car insurance companies consider people to become more risky for driving on roads and increase the premium of car insurance.  Some insurance companies feel that aged drivers are likely to be more prone to accidents; hence they charge more to offer protection. But there are other companies that do not follow this rule and looking for such companies can provide relief to elderly people.

More driving means more risk
The distance driven annually is considered for determining the premium of car insurance. The more you drive means the chances of accidents are also more and this is the reason why you are asked to pay more premium if you cross a certain limit of distance that you drive in a year. Conversely, this also gives an opportunity of getting the insurance cost lowered by reducing the distance that you drive.

The car meets with an accident
Regardless of who is at the wheels at the time of accident, if the car belongs to you and so also the insurance policy for it, then be prepared to lodge a claim for the damages but at the expense of paying more premium the next time. It has been proved that what has happened once can happen again and the car insurance company charges you extra for the increased risk coverage that it provides.

Singles pose more risk
Peculiar are the ways how car insurance companies work out their risk index. Married people are considered to be less risky hence with low chances of erring on roads that can lead to accidents as compared to their unmarried counterparts. This is the understanding of some insurance companies that charge higher premium on car insurance for singles.

If you own a car you have to play by the rules of the game set by car insurance companies. But since the rules for charging higher premium are not uniformly applied by all companies and there are exceptions, you can always shop for more reasonable terms that can cost you less.

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