Why doesn't my insurance premium go down as my car gets older?
"If my car depreciates in value every year, shouldn't my insurance rate decrease every year? I feel like my policy gets more expensive every time it renews."
“The coverage that is affected by the value of your car is the comprehensive coverage and collision coverage. In most cases, you will see the rate of these individual coverages go down over time. The insurance carriers have to account for the cost of labor, which tends to stay the same or increase over time.
The liability portion of your policy is not connected to the age of your vehicle. The costs of bodily injury liability and property damage liability are based on:
- the cost of healthcare in the area where you live
- the likelihood of being in an accident
- your past driving history
These are all factors that can cause the rate of your policy to increase even as your car gets older.
If you are unhappy with the price of your policy, download the free Jerry app to get instant quotes from over 45+ carriers. One of Jerry’s best features is they re-evaluate your policy every renewal to make sure the policy you have is the lowest option available.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
How can I tell if a repair shop recommended by my insurer is gouging me for accident repairs?
I recently got in a single-car accident. Most of the damage looks cosmetic, but the insurance company's preferred auto body shop gave me an estimate for $7,500. My deductible is $2,000, and I think the damage is far less than that. How can I tell if a repair shop is gouging me?
Apr 22, 2021
What does non deductible mean for glass coverage?
"I'm adding comprehensive to my insurance policy. I have an option for non-deductible glass coverage. What does this mean?"
Jul 28, 2021