Why Did My Auto Insurance Rates Increase?
Having auto insurance is important for every driver. If you notice that your insurance costs have increased when you go to renew there could be a few different culprits. Knowing what can cause cost increase is important for your financial health. See if any of these reasons have affected your insurance costs:
The zip code you live in can affect your insurance costs. If you just moved to an area with higher car theft happens, it could have an impact on your insurance. Moving to an area with a higher population density can also have an impact.
2. Your Credit Score
In certain states, your credit score can affect your auto insurance rates. Having a lower credit score may be impacting your insurance rates. In some situations, this can hike your rates up significantly!
3. Claim History and Driving Record
Your driving record and previous claims can impact insurance costs. If you have gotten into more accidents recently, these could be reflected in your auto coverage rates. Being a safe driver can be good for the wallet.
4. Adding New Drivers
Do you have a teen that just started driving? Teens are notoriously expensive to insure, but there are ways to drive down the costs. Be sure to ask your insurance agent about potential discounts, like good grade discounts. Look to see who is on your policy. Adding new drivers can increase insurance costs.
5. The Vehicles on Your Policy
Get a new car recently? Get rid of a car recently? Both the number of cars on your policy and the make/model can change the cost of your auto insurance. Often, auto insurers will offer multi-car discounts, but if you remove a car from the policy, it may increase the cost to insure one vehicle.
6. Canceling Other Policies
Having multiple policies under one insurer can be a good way to get discounts. However, if you cancel other policies, it might affect your insurance costs since you no longer qualify for a multi-policy discount.
7. Changing Employment
If you were previously using a discount associated with a place of employment or using a group discount, changing your employment may increase your auto insurance rates.
8. Changing Payment
A common discount offered by insurance companies is a paid-in-full discount. Another popular one is the electronic bill payment discount. Depending on your agreement with your insurer, switching your payment plans may have an impact on costs when you go to renew.
9. The Insurance Company and Policies
Each insurance provider and they policies they offer differ. It’s important to shop around and take some time to find the right policy for your situation. Talk to your agent to figure out what makes the most sense for you. Do your homework and look around before committing to a policy.
10. Other Factors Outside Your Control
Sometimes, there are things outside of your control that can affect your insurance costs. The economy, the number of drivers, and the number of accidents occurring can all be factors outside of your control. While these things may be an unfortunate reality, there are plenty of discounts to ask your agent about.
Did your car insurance costs go up? These could be some of the reasons why. But if you are ever in doubt, talk to your agent about it. They can help you figure out the right policy and coverage options for you. Ask them any questions or concerns you may have!