• Home
  • Get A Quote
  • File A Claim
  • Customer Service
  • Carriers
  • Make A Payment
  • Refer a Friend
  • About Us
  • Location Map
  • Employee Directory
  • Privacy Policy
  • Contact Us
Call Us CALL US TODAY | (888) 337-9322 | COVID-19 Resources
Home
  • Home
  • Personal
    • Homeowners
    • Auto
    • Life & Annuity
    • Flood
    • Mobile Home Insurance
    • Motorcycle
    • Recreational Vehicle
    • Renters
    • Umbrella
    • Watercraft & Boat
    • Windstorm
    • Quote Forms
  • Commercial
    • Business & Commercial
    • Workers Compensation
    • Employee Benefits
    • Trucking
    • Liquor Based Business
    • Construction
    • Group Health
  • File a Claim
  • Make a Payment
  • Customer Resources
    • Customer Service Forms
    • Secure File Area
    • COVID-19 Resources
    • DSI Newsfeed
    • DSI Videos
    • Refer A Friend
    • Darr Schackow Insurance Success Stories
    • Free Reports
    • Partners Page
    • Insurance Glossary
    • Real Estate & Mortgage Professionals Area
    • Document Library
  • About Us
    • About Darr Schackow Insurance
    • Carriers
    • Our History
    • Our Locations
    • Staff Directory
    • Customer Testimonials
    • Privacy Policy
    • Workplace Awards
  • Contact
    • Contact Us
    • Gainesville Main Office
    • Jacksonville Office
    • Leesburg Office
    • Milton Office
    • Palm Beach Gardens
    • DSI Trucking Office
    • Armstrong Agency Insurance Group
    • Educators Premier Insurance
    • First Heritage Insurance
    • Fleming Island Insurance
    • Front Street Insurance Group
    • James Harmon Insurance Agency
    • Ribeiro Insurance Group
    • Tom Jones Insurance
    • Trevor Hickman Insurance
    • Boudreaux Insurance Agency
    • Jim White Insurance
  • Blog
  • Join Our Team
Home > Blog > Why Does My Car Insurance Go Up as My Car Gets Older?
WEDNESDAY, NOVEMBER 27, 2019

Why Does My Car Insurance Go Up as My Car Gets Older?

DSI-Old-Car-Insurance-Blog

Car insurance premiums are made up of many different parts. The cost of liability, comprehensive and collision coverages are calculated separately from one another. Here’s how comprehensive and collision insurance is priced. The insurance company actuaries are tasked with calculating the probability that you will get into a car accident. Using an algorithm based on that probability, a premium is determined. The insurance company then evenly spreads the premium (the risk) over the expected life of the car. So when the car is new, you are getting a really good deal on your insurance premium. As the car gets older, the insurance company is getting a better deal. This is why DSI agents advise our customers to assess whether it is worth keeping collision coverage on an older car.

Every year as a car gets older, the insurance company will go back to the actuaries to see if their original algorithm was correct. If it was, then you won’t see much change in the premium. If they weren’t accurate in their predictions, you will see a rate increase. However, car repair costs continue to rise. This drives up the cost to insurance companies. and they pass that cost on to the consumer in order to stay financially stable.

John Darr

CEO/Owner

Contact us or get an auto insurance quote now. 
Posted 12:55 PM

Tags: auto insurance, insurance advice
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016

  • commercial insurance(18)
  • homeowners insurance(17)
  • auto insurance(15)
  • life insurance(10)
  • insurance advice(10)
  • gainesville insurance(8)
  • business insurance(8)
  • covid-19(6)
  • uninsured motorist(5)
  • cyber liability(5)
  • specialty coverage(4)
  • hurricane(4)
  • 2022(2)
  • insurance misconceptions(2)
  • rv insurance(2)
  • cyber security(2)
  • renters insurance(2)
  • cyber liability insurance(2)
  • flood(2)
  • fire safety(2)
  • wind mitigation(2)
  • cyber coverage(2)
  • insurance claim(2)
  • personal lines insurance(2)
  • personal insurance(2)
  • home inspection(2)
  • home(1)
  • ltc(1)
  • commercial auto(1)
  • should i buy stacked uninsured motorists coverage for one car? cheap car insurance(1)
  • goals(1)
  • family(1)
  • employee benefits specialist gainesville florida(1)
  • lawsuit(1)
  • assignment of benefits(1)
  • doubt(1)
  • insurance tips(1)
  • cheap car insurance gainesville(1)
  • umbrella insurance(1)
  • should i buy uninsured motorists coverage for one car(1)
  • rental insurance(1)
  • local independent agent(1)
  • voluntary benefits(1)
  • auto insurance gainesville(1)
  • renter(1)
  • motivation(1)
  • attitude(1)
  • auto insurance jacksonville(1)
  • work comp(1)
  • locally owned auto insurance agency(1)

View Mobile Version
Auto Insurance AUTO Read More
Homeowners Insurance HOME Read More
Business Insurance BUSINESS Read More
Life Insurance LIFE / ANNUITY Read More
Employee Benefits Insurance EMPLOYEE BENEFITS Read More
What's New? DSI Newsfeed Read More
Facebook
Twitter
LinkedIn
Google+
Instagram
YouTube
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Facebook Logo

Resources

Home About Us Get a Quote Customer Service Contact Us

Contact Us

  • Gainesville Office
  • 5200-B W Newberry Rd.
  • Gainesville, FL 32607
  • _
  • Call Us (888) 337-9322
© Copyright. All rights reserved.
Powered by Insurance Website Builder