Auto insurance – for many it’s considered a necessary evil. It seems like the rate keeps going up year after year, and maybe you’re not even sure why. Most of the time, there’s a good reason for the increase, but sometimes the increase may be completely out of your control. Here are some common causes for auto insurance rate increases.
- Claims. The more claims you file, the more likely your auto insurance rates are going to go up. If your insurance company has to pay for damages you cause to someone else’s car or property, you can expect a rate increase for that, too.
- Violations. Drivers who get ticketed for speeding and other unsafe driving habits will often see rate increased. The insurance company will become concerned that these dangerous maneuvers could cause accidents which will lead to more claims, so they’ll raise your premium in order to protect themselves.
- Moving. Where your car is stored is generally a factor when compiling your rate. If you move from one area to another and the perceived likelihood of claims or your car getting stolen increases, your rate will probably go up. (Note that sometimes it could go down, too.)
- Family. Your insurance policy should include everyone in your household who has a driver’s license. If you add a new or young driver to your policy, not only will you pay more for the extra person, it will be a higher rate than an experienced driver with a clean record.
- New vehicle. You may expect to pay more if you buy a better car, but new technology that’s more expensive to repair is causing insurance rates to go up. A used car might be less expensive to insure.
- Fraud. Though you aren’t committing fraud, other people are, and it’s driving up auto insurance rates.
Safe driving is probably one of the best ways to keep your auto insurance rate as low as it can be. Insurance should be there for you when you need it and should provide valuable protection of your assets in the case of an accident. But if you can avoid filing a claim, you’ll likely pay less in premiums over time.
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