Why are my insurance rates going up?
The increase in your insurance rates could be a result of a variety of different factors, including the increase of accidents in your area where you live. If your zip code or surrounding areas experience an increase in a loss, this could affect your premiums. This means the risk has gone up and the odds for an accident to take place have risen. Your driving record can also play a part with your rates increasing. If you recently received a violation or speeding ticket, your rates can be impacted. Another thing that can affect your rates is adding a new driver to your policy. Though it can benefit you at times, sometimes it may not be in your favor. It may not be in your favor if this driver has a bad driving record or maybe an inexperienced driver. Along with location, if you move from one area to another, your rates can be impacted if you move to a more riskier area. Many times accidents can increase your rates as well, regardless of if you were not responsible for the loss. The most common reason as well for a rate increase is due to the overall market and inflation, where rates have risen due to car parts and labor of repairs going up. Also, many accidents these days are creating more injuries.
Key Points
New driver or car
Adding new drivers to your policy, especially a young or new driver, can increase your rates. Also, adding a newer vehicle can increase your rates.
Driving History
Speeding tickets, accidents, and traffic violations are major factors that can increase your insurance rates significantly.
Location
Local accident statistics and crime rates where you live can impact how much you pay for insurance.
Claim frequency
Greater claims being filed in your area can lead to higher rates where you live.
Credit Score
Some insurance companies use your credit score to determine your risk level. This can have an impact on your rates.
- Shop around and compare quotes with different insurance carriers.
- Maintain a safe driving record and avoid any speeding tickets and violations.
- Ask about discounts and see if you qualify for any defensive driving discounts or good student discounts and if bundling policies would give you a better rate.
