Why do auto insurance premiums change?

Auto insurance premiums change for the same reasons that the price of other goods and services you buy change.
Insurance companies incur the same costs you do in buying goods and servcies, and these costs can ultimately affect your insurance premium. Costs affecting the ultimate price of auto insurance include:
Medical costs to treat injuries Auto repair costs Costs to adjust claims Inflation Uninsured drivers (your policy pays when the other driver doesn't have an auto insurance policy if you purchase Uninsured Motorist coverage) Although insurance companies can't directly control these costs, we regularly monitor them to see how they are affecting the costs of the claims we pay. As they change, auto premiums must be adjusted. These costs can affect your auto insurance premium whether or not you individually have had an accident or claim.
Changes you make to your auto insurance policy or coverage may also change the premiums. Adding or removing a driver, buying a new car, moving to a new location or changing how you use your car may influence the cost of your auto insurance.