Why Do My Auto Insurance Rates Keep Going Up Even Though My Car Keeps Getting Older?
It’s a question we hear all the time:
“Why are my auto insurance rates increasing even though my car is getting older?”
You’d think that as your car ages and loses value, your insurance premium would go down, right? Well, not exactly. There’s a lot more going on behind the scenes—and your vehicle is only part of the equation.
Let’s break it down and explain why those rising premiums may still be justified.
Auto Insurance Covers More Than Just Your Car
Even though we call it “car insurance,” it really should be called auto owner’s insurance—just like home insurance is technically “homeowner’s insurance.”
Your policy is not just protecting the metal and rubber you’re driving around in. In fact, most of the cost of your premium comes from liability-related coverages that have nothing to do with your vehicle’s age or value.
Here are just a few of the items listed on a typical auto policy:
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Bodily Injury Liability
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Property Damage Liability
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Uninsured/Underinsured Motorist Coverage
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Medical Payments
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Funeral Expense Coverage
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Loss of Use
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Rental Reimbursement
How many of those directly cover your car?
None.
How many affect your premium?
All of them.
People Cost More Than Cars
One of the biggest reasons insurance rates go up? The cost of injuries and medical care.
If you cause an accident, your insurer may be on the hook for hospital bills, rehab costs, lost wages, legal fees, and even funeral expenses. These expenses have risen significantly in recent years—and that directly impacts your premium.
A car can be replaced. A human life cannot.
You’re Part of a Bigger Risk Pool
Another major factor? You’re not alone. Auto insurance works on a concept called risk pooling. Your rate is affected not just by your driving record and vehicle, but by the collective behavior of everyone in your insurer’s pool of policyholders.
If more people are filing claims, getting into accidents, or living in high-risk areas, those costs get shared. That means your premium might rise—even if you haven’t had any recent claims yourself.
Look at the Full Picture of Your Policy
When your premium increases, it’s tempting to blame your older car. But before jumping to conclusions, take a few minutes to review your full policy. Consider all of your coverages—not just the value of your vehicle.
You might be surprised at how many line items contribute to the total cost.
✅ Final Thoughts
So, why do auto insurance rates go up even though your car is getting older?
Because your premium is based on a lot more than just the car. It covers people, property, and potential liability—some of which can cost hundreds of thousands of dollars in a single accident.
The next time your renewal comes around, take a close look at what’s covered. And if you’re not sure what you’re paying for or want to explore options to lower your rate, reach out to us—we’re here to help you make sense of it all.
