Why Are Auto Insurance Rates Going Up?

Your auto insurance rates going up can be the result of several things, like getting a few speeding tickets and being responsible for an accident. In this article, we will discuss some of these factors. By doing this, you can take steps to curb them and reduce your rates.

Insurance Rate Increasing Factors

While there are several factors controlled by your insurance provider, there are some you can control. They include:

The State of Your Credit

Several insurance providers utilize a credit-based insurance score. With this method, factors like types of credit, such as loans and credit cards, and credit history can affect your insurance rates. Consequently, if you have a low credit score, your insurance carrier may increase your rate when you renew your policy. 

Your Traffic and Payment History

Your traffic history, including speeding and driving under influence and history of late payment may cause your insurer to raise your premium. Additionally, your provider may decide to raise your rate if you were judged to be at least 50% responsible for an accident. Sadly, this increase may remain until you demonstrate you are a good driver. 

Your Claims History and Driving Record

Your insurer may increase your rate if you are involved in numerous accidents, even if you were not at fault. They may also increase your rate if you file several comprehensive claims for events like broken windshields, contact with animals, weather damage, etc.

Below are some of the factors beyond your control: 

Changed Marital Status

Statistics have found that single drivers file more claims than their married counterparts. As such, your insurance rate may increase if you divorce your spouse, or in some cases, if your spouse dies.

Add New Drivers to Your Policy

The insurance company may increase your premium if you add another driver to your policy, such as a spouse or ward.

Changed Gender Marker

Statistics show that female drivers have fewer auto accidents than males. As such, if you change your gender marker from female to male, your insurance rate may rise. 

Your Location

If your ZIP code shows an increase in claims for auto theft, weather-related damages, collisions, or vandalism, your premium may increase. 

Your Car’s Make and Model

If there is an increase in the number of claims filed for your car’s make and model, your insurance rate may increase. The increased claim is an indication of high risk, even if your car is not involved in an accident or damaged.

Your Age

Younger drivers typically pay higher insurance rates than older ones because they are considered inexperienced drivers. This, however, does not mean that your insurance rate cannot increase as you grow old. 

Across-the-board Rate Increase

Insurance companies can increase insurance rates for all their clients for certain reasons. These include an increase in claims or an increase in the number of cars plying the road. It also includes an increase in accidents that result in injuries and fatalities, among others. The increase applies to all policyholders, whether you have zero claim history or not.

Most of the factors that determine auto insurance rates are beyond your control. However, you can improve on the ones you have control on. Examples include improving your credit score by paying your cards and clearing your balance on time, improving your driving skills, avoiding accidents, and paying out-of-pocket for minor damages. To find out more about how you can reduce your auto insurance rate and for any other related queries, contact us at Lou Agetta Insurance.