Many things can change your price at renewal or when you change your automobile insurance in Coral Gables. For instance, your car insurance rates may go up if you buy a better car, you are in an accident, or the economy as a whole is doing poorly. Read on to learn more about the things that could affect how much your auto insurance coverage costs.
Increased Number of Claims
Insurance is a group of people sharing a pool of money so that they are taken care of if a protected loss happens to any of them. Because car accidents, replacement costs, and other things can happen at any time, sometimes you pay more into the pool than you get out. Sometimes you get back more than what you put in.
Rates for automobile insurance in Coral Gables help ensure that the money will be there when you need it. Insurance companies may raise rates when it looks as if they will have to pay out more claims than what customers pay in.
Fraud is a sad fact of life that sometimes happens. Fraud includes things such as inflating how bad damage is to a car or how bad accidents are. This means that the auto insurance company, such as Del Toro Insurance, has to pay out more claims than it has made in fees. This could cause prices to go up for everyone. When it comes to scams, a few bad apples can ruin the whole bunch.