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What are some of the key factors that will affect your auto insurance rates?


Even the best auto insurance rates are likely to get affected by a number of factors.  For instance, when a claim is made the insurance provider will immediately consider the policy holder to be risky.  And because of this, the insurer will hike the premiums for the policy holder.

The policy premiums are likely to see a rise after a claim is made because the insurer will have to pay for damages to your vehicle as well as damage to any other property.  The insurer will also have to provide for the medical treatment for you as well as the other injured passengers in the vehicle.  The insurer will also have to cover loss of wages and other damages if the claim is made.

If the opposite party which was involved in the accident was uninsured, then the insurance provider will have to cover all the related expenses and this could turn out to be very costly.  Most of the time when an insurance claim is settled the insurance provider will recover that amount for you.  But in most cases they might be unable to recover the entire amount.  Hence, when the policy is renewed you will be made to pay up higher premiums so they can counter the risks of any claims that would be made in the future.

The other factor that will affect your insurance premium is traffic violations – a speeding ticket for instance.  While, this might not pose a direct threat to your insurer, but will definitely add to the risk factor.  All these traffic violations will reflect carelessness on the part of the individual.  Your premiums are likely to increase if your insurance provider thinks that you are a reckless driver.

Your premiums may also go up if there are too many claims settled by your insurance provider – even the ones that are made by the other policy holders.  Even if you don’t have anything to do with this, the premiums will be hiked for all policy holders if too many claims are made.

The premiums will also go up each time you add a new driver to the existing policy.  This really has nothing to do with the age of the driver, the driving records etc.  However, the rates could be higher if the driver is very young or inexperienced or if it is someone who does not have a perfect driving record.