Car insurance premiums can be expensive and it’s always concerning when they rise even further. There are many reasons that your car insurance may go up. Aspects that generally affect your car insurance premiums include your:
In general, your car insurance rates will go down after you reach 25 years of age. Insurance for teenagers is the most expensive compared to any other age group. This is because teenagers are usually new drivers who are more likely to have an accident or file a claim. If you add a teen driver to your insurance policy, your car insurance rates may go up a large amount. You will also see an increase in your premiums after turning 65.
2. Credit score
Most car insurance providers consider your credit score as an example of your reliability. Drivers with poor credit scores may have to pay more in car insurance premiums to cover the potential loss for the insurance company. You can build your credit score by turning on automatic payments and paying off bills or credit cards.
3. Driving record
Your driving record is one of the most important influences on your car insurance. Drivers with a bad driving record, often considered non-standard or high-risk drivers, will likely have to pay more for car insurance. The rate of increase in your car insurance rates depends on the violation. After one at-fault wreck, drivers see an average of a 31% increase to their premiums. A DUI causes an average rise of 80%. This is a hefty amount—approximately $1,163 per year on top of your original premium. To avoid this, be sure to drive defensively and avoid distractions on the road. Never drive under the influence of drugs or alcohol.
4. Type of vehicle
Certain vehicles may cost more to insure. Sports cars or vehicles with speed modifications typically cost more to insure, as they crash more often than other standard cars. A vehicle with a low safety rating or a high rate of theft may also be more expensive. When shopping around for a vehicle, it’s recommended to search for an older vehicle with a high safety rating and low rate of theft. Insurance for newer and more expensive cars is often higher.
Certain areas even within the same state charge more for car insurance. This is for a few reasons. If you live in a wealthy neighborhood with expensive vehicles, your car insurance is likely to be higher to cover the possible cost of repairs to those vehicles. Some areas are also more prone to thefts and vandalism, which the insurance company considers when calculating a car insurance quote.
Males tend to pay higher insurance premiums than females. This is in part because men are statistically more likely to be involved in traffic accidents.
Believe it or not, your profession and other hobbies also matter when it comes to car insurance. This isn’t true for every state, but a lot of insurance companies consider your occupation and how much you drive when calculating your insurance quote. Professions that concern a lot of travel or long work hours may be charged higher insurance rates. This is because more travel and long hours both may increase the likelihood of an insurance claim. This is not the same as commercial auto insurance, however. Make sure you are honest with your insurance agency about what your vehicle is used for. If you just use your vehicle for commuting to and from work, your personal insurance policy should be sufficient coverage.