Best Cost Car Insurance

why does car insurance rates go up after manditory insurance laws pass?

the insurance companies promise that passing these laws would always lower them

Public Comments

1. because then they have to insure all the bad risks. those who know how to drive and those who know how not to drive.
2. OK, there have been mandatory insurance laws for YEARS in all states except NH and WI, and if there are new laws there, I haven't heard about it. So this isn't something new - so you can't say that they go up after the law passes. In general, though, it doesn't get any cheaper to fix a car. Body shops haven't lowered their rates, EVER. Medical expenses go UP. So claims paid out, go up, not down, and there isn't any REASON to lower rates. And I think it's the POLITICIANS promising that passing the laws will be good for people, not the insurance companies.
3. Part of your rate is the limits of liability you carry. I suppose you are talking about Texas where they just raised state required limits from 20/40/15 to 25/50/25. The reason your premium is going up is because your coverage amount is going up. Insurance companies dont control what the state required limits are. Hope that helps.