Why do Car Insurance Rates go up?
Car insurance rates go up for several reasons. Inflation, cost of goods and services on the part of the insurance company, and claims made on the part of the car owner. Other reasons for an increase would be if you buy a brand new car under an auto loan, you will be required to pay top dollar. The only time this amount will go down is when the value of the car decreases in 2 to 3 years.
If you change anything about your personal demographics like address, job, or civil status etc., the actuaries will take these into consideration and compute for a new rate. The rate may either go up or down depending on your circumstances.
Then, you have to consider any government or industry changes. The past year has seen an increase in taxes. This could eventually be a factor. There are also insurance companies that may need to raise their base rate because of a need to increase revenue. All these affect car insurance rates.