Why does Car Insurance Rise up even when there are no claims?

Why does Car Insurance Rise up even when there are no claims?

While most of the people generally face troubles and hassles while getting a car insurance and the complex processes involved in it. Even after buying the car insurance from a trusted company at a fixed rate, the cost of the car insurance still can subsequently rise. Even if you have not made any such claims from your car insurance, it may be possible that you have to pay a higher premium rate over time. There are variant and different factors that affect this factor. Read the article further to get more details on that.

What are the Factors considered when the Insurance Company Raises your Insurance Premium?
Your Insurance company will consider various different factors while they review and raise your premium amount for your car insurance policy. Following are the factors that are considered in such cases.

Record and history of your car insurance claims.
History of any criminal offences or violations of traffic rule on the name of the car and the insurance holder.
If the insurance holder gets more than one vehicle registered by the same insurance company, he may get some discount in the rate of the insurance premium.
Change in the employment status of the car-owner and the insurance holder. This can readily affect the policy rates or discounts applied to the holder.

No Claims faced.
Most car owners are of the view that if they had no claims from their insurance policy, then, at the time of renewal, their insurance rate would not increase and they would have to pay the same cost for the insurance policy. Thus is a very rare case where such a thing happens. External factors play an important part in the calculations of premium rates.

Liability Claim
There may not be any factor on your end that had affected the rise in premium insurance rates. If the insurance company’s liability claims were higher than what was predicted by the insurance company, there is a possibility that the insurance company may make amends to balance profit margins. The insurance company can increase the rate of insurance policy and make a hike in the premium rates for all customers for the next year.

Increase in Accidental Claims or Reported Cases
If the car owner has made several claims or the insurance company had paid for accidental damages over the year, then the insurance company many increase the rate of insurance policy in the following year. If the insurance holder has had a criminal pattern or so, the rates for insurance are also revised.

Insurance Holder’s Credit Score
The process of including the insurance holder’s credit rate while issuing an insurance policy is not something that the insurance company follows. It although has an adverse impact on the premium insurance rate if the holder’s credit score is not suitable. There are several cases where in spite of having a poor credit score, the insurance company provides a suitable premium amount. This case is although not applied in all cases.