Every American needs to become a savvy consumer that doesn't blindly accept what financial institutions and other businesses tell them. Always question everything!
This includes an increase in your auto insurance rate. There are many situations in which your auto insurance premiums might go up, but if you don't fall into any of the following categories, reach out to your insurance agency to have them look into it and shop your renewal..
Keep reading to find out more about this.
1. Driving Record
It's important to keep an eye on your driving record and avoid getting any speeding tickets or traffic violations. You might get complacent as you get older because you believe you are a good driver.
However, even one minor traffic violation could increase your auto premiums. Always drive safely, stay alert, and keep a good distance between you and all other vehicles around you.
2. Putting in a Claim
This is a given, but if you get into an accident and put in a claim to your car insurance agency, your premiums will probably go up. The amount of increase will depend on the severity of the collision.
If the car accident wasn't your fault, then your premiums might not go up, but you will want to check this with your insurance company, just to make sure.
3. Credit Score Changes
You probably had no idea that auto insurance companies care about your credit scores as well. They don't do this because they are looking at your ability to repay a loan, but because research proves that people with lower credit scores are more likely to get into auto accidents than ones with higher credit scores.
That is, they are more likely to engage in risky driving behavior. Hard braking and hard accelerating in particular are two of these risky behaviors.
All the more reason for you to start paying attention to your financial life and not get into unnecessary debt.
4. Moving to an Expensive Zip Code
If you have moved recently, your auto insurance increase might be related to that. Depending on the zip code you've moved to, your premiums might increase or decrease.
Sometimes the increase happens even if you only moved a few miles away to a new zip code. The increase can be as much as hundreds of dollars if you move to a truly expensive zip code. So keep that in mind when making plans to move to another city or county.
5. Auto Insurance Increase Happens for Many Reasons
Now you know some of the reasons why your auto insurance rate might go up in the coming months. You need to keep an eye on your premiums to ensure they don't randomly go up without any aforementioned rationale.
Don't have car insurance yet? Contact Tom Needham Insurance Agency and set up auto, home, or business insurance for yourself and your loved ones. We offer better prices and the best service for all your insurance needs.
