If suddenly your car insurance hikes do not worry it is to cover the rising costs to maintain your car, especially in the auto-freak age. As per Glen Langenegger, general manager of Budget Insurance:
While most customers assume that the biggest risk to their vehicle is theft or a complete write-off, this isn’t the case. In reality the actual value of the vehicle is not a major determinant of the premium price. Rather, factors such as the cost of repair play a far more significant role.
A recent article reveals the fact that a higher insurance premium on cars is because of the hike in the car repair costs. Moreover it is the calculated risk written by the underwriter that determines the amount of risk-covered in the premium. As per Langenegger:
This is necessary, not only for the appearance of the vehicle, but also for safety reasons. Hence, as a broker, we will only place business with underwriters that utilise reputable repairers and undertake to offer a lifetime guarantee on maintenance work.
