Assuming no change in driving status (i.e. no additional accidents / issues) what is the normal expected rate of increase in insurance cost for my automobile? The obvious answer would seem to be the rate of inflation but I wanted to look for additional insight.
There is no expected rate of increase - inflation is only a minor factor. Important factors include:
- How much the insurance company thinks they can get away with increasing your premium every year.
- How many claims they have paid out recently. To a large extent, their losses are for compensation to third parties, rather than to the insured's own property. This is out of the control of the insurance company, and injury claims can be very expensive.
- Your risk. This should go down over the years as you get older and more experienced, up until the point that you're so old that you're an increased risk. So if nothing else changes, your premiums should go down. But see item 1 for why it doesn't.