Why is my motor insurance renewal getting costlier each year?I am making claim every year. Purpose of insurance is to cover the claim. But my insurance gets costlier the next year. Am I missing something here?


Insurance is all about cover the risk of uncertain event . Premium is dependent on probability of occurrence of event .

By making a claim each year , you are increasing the probability of occurrence of event hence Insurance Company increases the premium and reduces the sum assured .

You can not use insurance for personal gain . Insurance is a system of win win and not win loss .

Insurer would incentivise you with No claim Bonuses and would reduce your premium if you are not making any claim which means you are a safe driver .

Hope this clarifies 

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