Why does your rate go up even if you haven’t filed a claim? Insurance is a system where individuals pay premiums into a pool of funds that is used to pay for claims when they arise. However, when there are too many claims and the pool of funds is depleted, insurance rates increase for everyone not only the people that have had the claims.
We get it. It stinks to pay money for something you hope to never have to use.
However, despite how much we dislike paying for it, insurance remains a crucial aspect of our lives because it protects us financially against catastrophic losses.
December 15, 2023