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

8 Comments

1. admin says:

   June 22, 2009 at 6:15 pm

   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. admin says:

   June 22, 2009 at 6:15 pm

   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.