My car insurance has been going up every six months and I have never filed a claim. Why is it going up?

My car insurance has been going up every six months and I have never filed a claim. Why is it going up?

I don'-t understand this. I remember the old days when car insurance companies actually used to mail out dividends to customers. The customers would actually get money back. But that stopped. And boy did that ever stop. I am a 37 year old man who lives in Florida and has never filed a claim in my life. My credit is good. I'-ve never even gotten in an accident. Yet, every six months my car insurance rates jump. I ask the company (Progressive Direct) why. I get the same reason every time. The same reason I get kind of goes like, "-Well there has been a lot of fraud in Florida in the past few years so we'-re gonna make you pay for it."- Also, a new reason given to me yesterday was, "-Well, health care costs are too high across the country and they keep going up significantly so we have to pass the cost down to our customers."- I don'-t know whether or not to believe these reasons. Maybe it could be a little bit of greed. Who knows? The auto insurance could just be doing this for reasons of profitability. Maybe they simply want to make more money and one way of doing it is to raise everyone'-s premiums across the board. I mean, that could be the case, too. It can'-t be completely ruled out. Maybe they want big earnings to keep pushing the stock upwards. Who knows who to believe in a situation like this. A person would probably get a different answer from everyone they asked. And I guess that is why I am asking it here.


Insurance premiums are based on risk. Group risk to be specific. You are getting the discounts you deserve, but as a whole, the group, specifically where you live, is causing your rates to go up. Think of it like this, when you shop in a retail store, the prices are set, but when there's shoplifting the prices go up. You didn't shop lift, but you pay for the difference the losses caused. The cost of insurance only goes down when the risk and experience allows it. Florida is a wealth of insurance fraud and non-insured're paying for it. Have a wreck, bad credit, tickets etc., you'll pay even more. Basically, you're doing your part to keep rates down, but lots of people around you aren't.As for dividends, that's only something you'll see from a Mutual company who has a good experience rating based on the group they insure. That would be State Farm, USAA, Nationwide. Progressive is a Stock held company. The only people receiving any dividends from Progressive are the Board of Directors, just like Allstate and Geico. Do a little research and find out which companies insure low risk drivers, mostly. That's the companies who, overall, will reward you, in the long run for their and your, positive experience.Source(s):Been doing this over 24 years.


The reason your insurance is going up is because you live in Florida. The cost of insurance in Florida is going up. The insurance companies are not making more money- that is the one thing that can be completely ruled out. Their earnings are going down, not up.


You should get quotes from other companies.Source(s):


Call Geico- and get a quote.Staying with one company too many years is considered by many a mistake.


I hear you! Sadly, it goes up to cover the expenses of everyone else. Nothing in life is fair.



Popular Q&A

Is my Indiana auto insurance valid in other states?
Your insurance is valid in all 50 states (even though it is very doubtful that you will drive to Hawaii). As long as the car is legally registered, and the policy is in effect, you are fine.Source(s):30 years in the auto business

What are some inexpensive, yet reliable auto insurance companies?
try mercury, aig, or progressive...get a free online insurance quote here...http://www.autoinsurancepros.netSource(s):

Where can I find the best auto insurance quotes online?
I’ve had the AARP Hartford’s comprehensive insurance for over 10 years now and I can safely say I’ve never had a problem with them. I’ve always found their rates to be reasonable (locked in for an entire year) and their service to be smooth and easy. I’d recommend you visit their website for...

How is my auto insurance effected in NJ?
On your next renewal (well right before), your company will pull motor vehicle records. Just so you know, just because a ticket is "no points" on your license, doesn't necessarily mean no insurance points. An at fault accident is 5 insurance points, a DWI, driving without insurance or driving...