Did Your Auto Insurance Rate Go Up? Here are a few reasons why, but give TDA Insurance and Financial a call! We can help! 248-347-3630
What can cause an insurance rate to go up at renewal?
The Michigan catastrophe claims association fee ( MCCA )
The MCCA fee increased from $170.00 per vehicle / per year to $192.00 per vehicle per year in 2018. This is a mandatory fee collected by each insurance company in the state and is remitted to the State of Michigan to fund unlimited medical costs due to an auto accident. There is no way around this fee.
Tickets, Accidents and Claims
If you have received a ticket(s), filed an auto or home insurance claim, your rates may increase. In addition to possible surcharges for tickets and at-fault claims, you may lose a discount. Many insurance companies offer a “claims free” discount, so regardless of fault, you may lose this discount.
Cost of Vehicle Repairs
The amount of technology utilized in vehicles today is driving the cost of vehicle repair up. Cost of labor can also drive up repair cost that are baked into your insurance rates.
Cost of Home Repairs
Widespread Damages from Catastrophes can cause a shortage of building materials, which drives up cost. In addition, labor shortages and low unemployment can increase the labor cost of construction projects.
Age of your Vehicle
Intuitively you would think the older the vehicle gets the lower the insurance cost. This is not always the case. Yes, its true the value of your vehicle is decreasing, this can be partially offset by the safety features as they diminish as the vehicle ages. This can cause your liability premiums to increase while your physical damage rates decrease.
Claims Frequency Increasing
The frequency of auto claims is increasing. Distracted Driving is now the leading factor in most crashes and near crashes, according to the National Highway Traffic Safety Administration.