It’s frustrating to get your monthly auto insurance bill in the mailbox and see it increase year by year. In most cases, you may never have had an accident that was your fault or even filed a claim at all.
While inflation and current trends have an effect on car insurance rates, you may still be experiencing incredible uncertainty during peacetime.
Fighting car insurance rates can feel daunting when the variables for change seem out of your control.
Our team believes understanding what causes car rate increases will help you understand how to move forward. Listen as we explain why your car rate is increasing and what to do about it.
Reasons for a Car Rate Increase
Sadly, auto insurance companies change their rates according to factors you can’t often control.
The car rate can be a reasonable amount one day and shoot up the next simply from being the victim of an accident. Or just by going through everyday life.
It’s crucial to be aware of these factors that agents take into consideration. That way, you can choose to fight back and get a lower auto insurance rate.
Moving violations and speeding tickets
You would think that car insurance companies only increase your monthly bill if you got into an accident. But that pointless speeding ticket you got running late to work also plays a factor in the premium.
Carriers track your motor vehicle report and determine you as a greater risk the more violations you have. Thankfully, they don’t count pesky parking tickets, but you should try your best to keep a clean record.
Both at-fault and not-at-fault accidents
It makes sense that a car insurance company would raise your rate for repeated accidents. But what if the accident wasn’t your fault and the other guy didn’t slam his brakes on time?
The insurance company will still raise your rate even if you were the victim of a tragic accident. They predict with statistical data that people caught in 1 no-fault car crash are likely to get into another, making you a liability.
Age
Watch out for an increase in insurance costs if you’re a teenage driver or over the age of 60. You’re considered a higher risk, even if you’ve had proper driving instruction or been driving your entire life.
Insurance companies paint a broad brush and assume that all teenagers are reckless drivers and that senior drivers have lost the capacity to operate a vehicle.
Comprehensive claims
Submitting a comprehensive claim adds fuel to the fire, depending on where you live. Areas with higher rates of theft, vandalism, natural disasters, etc. raise your car insurance rate as a result.
You can’t control when the business next door gets robbed and your vehicle gets caught in the crossfire. Property damage and repair costs are a part of having comprehensive vehicle protection.
But the car insurance company will still ding you in rising car insurance premiums for someone else’s reckless actions in your state.
Auto claims in your area
Despite a clean driving record with no accidents and claims, you can still suffer from an expensive rate. Auto carriers can determine your area has patterns of vehicle accidents and deem the area as high risk.
Sadly, your family will pay for someone else texting while driving or someone else flying through bumper-to-bumper traffic while putting makeup on.
Moving
Similar to claims in your area, the insurance company drives up the monthly premium if you move somewhere else with a high risk of accidents and comprehensive claims.
This is different from obtaining a new policy from moving to a different state. If you’re in-state and changing addresses, be aware that your carrier knows about it. They may penalize you for it.
Insurance score changes
Correlation data show that most people with poorer credit scores have a higher chance of submitting a claim. That means you’ll take a hit based on financial data that isn’t concretely tied to insuring your car.
Many states ban companies from adjusting your rate due to credit scores. But these carriers still consider the number by creating your insurance score based on it.
Gaps in insurance coverage
Difficult life circumstances may create a lapse in insurance. However, you’ll still have to deal with the increased rate, even if the reason was legitimate.
How to Keep Auto Insurance Premiums Lower
While your car rate situation may seem bleak, we know of numerous opportunities that can lower your premium.
Instead of resigning to expensive auto policies, fight back against carriers by finding discounts or switching companies.
Improve credit score
Lowering your credit score will improve your insurance score, which adjusts the monthly payment along with it.
Apply for Carrier Discounts
Being a student driver, having zero accidents, being a homeowner, etc. are common discounts that most companies offer. They help mitigate policy increases and keep your premium down.
Shop for other insurance carriers
It may be time to look into a new carrier for your vehicle. We recommend working with an experienced broker that can compare dozens of policies at once. It’s much more efficient than researching each one of your own.
Fight Car Rate Increases with a Broker
Working with a broker is partnering with a professional who understands the auto insurance market. They keep you informed if inflation, current events, or other variables drive up your premium.
Our caring insurance team can help you find the best auto insurance policy that protects what matters most. We’ll check over 40 of the top carriers and give you a plan that’s cheaper than your current one.
Let us bundle your savings and show you how to find the best policy that balances your budget and coverage needs.
Our team can also help you obtain an insurance quote for homeowners insurance, commercial insurance, and more.
Call our insurance staff at (520)-836-3244 today for lower auto insurance prices.