Do Insurance Premiums Increase Every Year?Written by Jon Register
Many people ask, "If I am supposed to get a renewal discount, why do my premiums seem to increase with each renewal?" The answer is not always so simple. Each year, new vehicles cost more then they did previous year. It will probably cost more to fix a damaged vehicle than it did last year, or five years ago when you first bought your current policy. However, in many cases, your renewal premium will be less. Some factors that contribute to decreases in your premiums are straightforward. According to Insurance Information Institute (I.I.I.), cost of auto insurance is expected to rise only 3.5% in 2004, smallest increase over last four years. Why? The number of auto accidents is on decline due to better drivers and safer cars as well as crackdowns on fraud and abuse. However, due to rising costs for medical care, vehicle repairs and skyrocketing jury awards potential of price increases remain a problem. Rising automobile theft rates and fraud will keep costs higher for motorists in some states, such as Florida, Massachusetts, and New York. The projected increase represents a substantial slowdown from 2003 when auto insurance costs rose by 7.8 percent, I.I.I. observed. The average cost for auto insurance nationwide for 2004 is estimated at $871, an increase of $29 per vehicle from last year. Unfortunately, even though drivers are filing fewer claims these days, claims that are filed are costing insurance companies more than they used to. It is costing more to repair cars as amount of damage sustained in crashes is up from what it was a few years ago. Some in industry feel this is due to accidents involving sport utility vehicles.
| | Buying a Used Motorcycle Can Be a Good ChoiceWritten by The Motor Bookstore
Reasons For Buying A Used Motorcycle:Have you checked out price of a new bike lately? It wasn't that long ago when you didn't have to fork out that much dough for a new car. In fact, many bikers will remember when you didn't have to pay much more than that for a modest house. The prices for houses and cars have shot up over years. And, so has prices of motorcycles. The point is, price of a new bike can take a good-sized bite out of any budget. Buying a used motorcycle is one way to lessen dent a motorcycle will make in your wallet. There are a number of benefits to buying a used motorcycle. The first is, of course, that you can save a lot of money. As a general rule, motorcycles lose a higher percent of their value when they roll out of showroom than do automobiles. The possible exception to this is Harley-Davidson. Harleys always seem to retain a high resale value. The second reason is that many motorcycles are not ridden many miles each year, especially in colder climates. So, it is easier to find a good, low mileage bike. Makes such as Moto Guzzi are especially durable and a low mileage model will have many trouble-free miles left in it. A third reason is that if there are any quirks to be worked out of a new model or a particular machine, these will likely have been done by time second owner gets bike. There are a number of sources available when buying a used motorcycle. You can buy a bike from current owner. The classifieds online and in newspapers are filled with ads for used bikes. You can also check with a dealership for trade-ins. Bikes at dealerships will often come with a warranty.
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