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.

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    What country are you in? If US, what state? The answer can vary widely by location. – NL - Apologize to Monica Feb 22 '17 at 23:43
  • Also age. Until you turn twenty-five, I would expect premiums to drop annually. I'm also wondering if the answer is going to be something like: get quotes from other insurers and see if they're cheaper. – Brythan Feb 23 '17 at 3:11
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    US companies are often overseen by a state insurance regulator. A company can petition the regulator for rate increases due to increased costs/payouts/whatever. The regulator may approve the full increase or some smaller amount. – mkennedy Feb 23 '17 at 21:32

There is no expected rate of increase - inflation is only a minor factor. Important factors include:

  1. How much the insurance company thinks they can get away with increasing your premium every year.
  2. 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.
  3. 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.
  • To add anecdotally to this: My rates went up 1 year without explanation. Never had an accident, no new cars, no credit issues. I called my provider and they told me "Our corporate office raised the rates for everyone in the state. There's nothing we can do, and I personally suggest you shop around and see if others are cheaper". – BobbyScon Apr 21 '17 at 18:57

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