Finding consistent auto insurance can be complicated at times due to the various factors involved. While practicing safe driving habits should help keep your rates low, there are other factors to consider outside of your control. If you’re concerned about paying higher auto insurance premiums, here’s a look at some of the common factors involved.
Any at-fault accidents on your driving record are an indication to insurers that you could have another one in the future. This will cause your insurance rates to rise. In some cases, your insurance rates can be compromised even if you file a claim for an accident you are not responsible for causing. Many insurers have noticed that the number of not-at-fault accidents continues to rise.
Buying A New Vehicle
If you purchase a brand new car, your insurance rate will increase. New cars are more likely to be stolen, and it also costs insurers more to repair or replace your car if you file a claim. Also, be aware that adding another driver to your policy will increase the cost of your policy. Insurers will adjust accordingly if you add someone with a poor driving record or has a high likelihood of being involved in an accident.
Insurers may raise your insurance rates if there are a high number of comprehensive claims in your area. Common comprehensive claims include vandalism, theft, or car damage caused by a fire/severe weather. This is an example of your rates potentially rising due to something out of your control.
Multiple violations on your driving record are a sign to your insurer that you are a relatively high-risk driver. Even a minor speeding ticket could lead to a premium increase. However, your insurance rate won’t be impacted by a non-moving violation such as a parking ticket.
Moving to a new state can impact your auto insurance rate. Moving is one of the few variables that may alter your policy without substantial changes to your coverage. Be aware that you will have to purchase a brand new policy if you are moving out of state. If you are simply moving to another part of the state that you currently reside in, your insurance rate will be adjusted based on the zip code.
Zip Code Claims
Insurance data in your zip code does impact your auto insurance rate. If local crime rates show a high number of accidents, theft, and weather damage claims, insurance companies may be hesitant regarding taking the risk of covering drivers who reside in the area. Even if you have a clean driving record, your surrounding may impact your auto insurance rate.
Both young and senior drivers may notice changes to their auto insurance rates. If you’re a young driver, insurers believe that your lack of experience could lead to you being involved in an accident, which increases your rates. Likewise, senior drivers could see their rates increase because of potential physical issues.
Consult with Duane Weber Insurance, Inc.
Learning about these common variables that impact auto insurance rates can help you in the future when your current policy is up. If you have any questions, contact our agents here at Duane Weber Insurance, Inc. We will assist you.