Do you remember calling around for insurance quotes and finally finding a pretty decent insurance policy and now, years later, you’re calling your insurance company to ask why your premium continues to rise for no reason at all.
Car insurance rates can go up for many reasons. Some reasons for your rates rising are under your control and some reasons can be out of your control. Here is a list of some factors that may cause your car insurance premiums to rise:
Driving violations – If you consistently obtain traffic violations such as speeding, you can expect your premiums to increase as a result. The safer the driver you are considered to be, the lower your premium will be. If you continue to file claims, even if the reason doesn’t seem to be your fault, your rates are likely to go up. It’s always worth considering whether or not it’s worth to file the claim.
Your credit score – You may think your credit score has little to do with your insurance rates but for most insurance companies it is an indicator that you may be a higher risk in turn charging you a higher premium.
Economy – When times are tough, fraudulent activity in the insurance industry increases causing our insurance companies to cover millions of dollars in insurance fraud every year. With this comes a higher cost for our coverage.
Change in status – If you were married and are now single, if you have moved to an area that has more traffic or a higher crime rate, then your rate may increase. Some neighbourhoods have a higher rate of auto theft resulting in a higher premium.
Although car insurance rates are probably going to increase over time, you can always save yourself money by keeping a good driving record, increasing your deductibles or fixing any problems on your credit report. Also, if you notice a big jump in your rate, pick up the phone and talk to your insurance agent to confirm that it’s not some simple mistake that can be corrected easily.
For more valuable information www.prudentvaluecars.com
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