Insurance is necessary for all automotive owners, but insurance company practices still remain a mystery to many drivers. Explore what causes your car insurance rate to go up to better understand how companies determine your premium.
Moving Violations and Tickets
If you have a history of moving violations, tickets, or DUI (driving under the influence) convictions, insurance companies will interpret this to mean you’re more likely to be in an accident. If you start to accrue a sting of speeding tickets or DUIs, your insurance company will eventually deem you a high-risk driver. This has no implications with law enforcement, but high-risk drivers will struggle to find companies willing to offer them a policy that doesn’t come with an exuberant premium.
Accidents—Even If You Weren’t at Fault
Your insurance is there to protect you in the case of an accident, but it can also be the reason why you can no longer afford your rate. Most people expect their rates to go up following at-fault accidents, but many don’t realize their insurance companies might increase their premiums even if they didn’t cause the wreck. That’s because their companies’ data has determined that they might have a propensity for getting into non-fault accidents.
Compressive claims cover your car in the case of theft, fire, vandalism, natural disasters, and other no-fault scenarios. However, companies will assume that if it has happened once, it’s more likely to happen again, so don’t be surprised if yours tries to hike your premium following a comprehensive claim.
Adding a Vehicle or Driver
The more cars and drivers on a plan, the more it costs. That just makes sense. However, some other nuances can cause an increase in your premium. If you get a sports car or other high-performance vehicle, your rates will go up because the added speed means you’re more likely to wreck. Also, models with a reputation for needing constant repairs often come with heightened premiums. On the flip side, choosing a car with an excellent safety report might translate to lower monthly costs.
When adding family members to your insurance, their driving history won’t be the only deciding factor in the monthly rate. Age can also be a significant deciding factor for insurance costs. Teenagers and drivers over 60 can catch high premiums because of their proclivity for getting into wrecks.
Now that you understand what causes your car insurance rate to go up, you can take steps to lower your monthly premium.