Three Factors That Can Raise Your Auto Insurance Rates
As nearly every state has laws set in place requiring motorists to have auto insurance, people are no doubt calling various companies or searching the web to find the least expensive auto insurance quote. Who wants to pay exorbitant premiums on the chance that something could happen? It is a venture–the driver is sure that nothing will happen; the insurance company is sure something will. As a matter of fact, insurance companies are confident that the need for their services will arise; there are specific times that the insurance rates will go up in the life of a driver.
Accidents/Driving Violations
The number one reason that insurance companies increase premiums for a driver is because of accidents. More specifically, an accident deemed a DUI (driving under the influence) will automatically inflate premiums. Other types of accidents may not cause the rates to increase on the first incident, but more often than not, subsequent accidents will–especially if the accidents are close together.
Moreover, insurance companies are interested in the continuous driving record of their insured drivers. If a driver seems to constantly receive tickets for speeding, running through stop signs, or other moving violations, the insurance company may choose to raise the insured’s rates. Too many moving violations illustrate risky behavior and the increased likelihood that the company will be required to pay out because of an accident.
Type of a Vehicle
There are many factors that determine the rate when calling for an auto insurance quote. Age, driving history, credit score, and marital status all play a role. However, there is one other factor that some people may be surprised about.
It is common knowledge that there are types of cars that are more likely to be stolen. The list of such cars may change in a given area, but it is worth knowing which ones make up the list, especially when shopping for a new car.
However, in almost all areas, a new car will always incur a higher premium than its much older version. If the new car is totaled, it will cost the insurance company more to replace it than its older counterpart.
Age
Typically, drivers from 16 to 25 years-old and then after turning 65 years-old will pay higher premiums simply due to their age. In the eyes of the insurance companies, the younger drivers lack sufficient experience and the older drivers are more likely to be in an accident.
With the all the benefits that comes with driving a motor vehicle also comes responsibility. And that responsibility comes at a price. While insurance rates based on age or even gender cannot be negotiated, keeping a safe driving record will keep those premiums low.
