Why does my premium increase every year, if the value of my car drops every year?
An excellent question!
Your Insurer will generally have a rate increase every year. The value of your car is one of many factors they’ll take into consideration when determining your next yearly premium.
They’ll also consider your claims history, the inflation rate, the increasing cost of parts and labour, import duties and the country’s crime statistics.
Your insurer monitors these factors closely and they’ll base their decision to increase your premium on a combination of these figures, not just on the value of your car alone.