Reasons for A Surging Auto Insurance Rate


No car owner in its right mind would love to see his auto insurance rates increase. While most drivers would pay the same amount during and every renewal period, some may not be that lucky enough and face inexplicable rising rates. Here are a couple of reasons why we think your insurance rates have risen.

Have you recently purchased an expensive vehicle, and you are at your retirement age? Well, it’s a surefire way to increase your premiums. These two factors don’t mix, and, even if they stand alone, both become a sure candidate for the not-so cheap premiums. You might have heard that only the teenage drivers using expensive car models can be slapped with expensive premiums, but you are dead wrong. Age does matter, and unfortunately, your age and the teenage drivers are both on the extremes.

Teenage driver could mean being inexperienced that quadruples the chances of getting into an accident. On the other hand, senior drivers may be more experienced and aware about road laws and regulations, but their physical limitations could hamper its practice.

The city you live or state you are planning to move into is expensive right off the bat. For instance, states that implement the no-fault policy will usually have higher premiums compared to those states that do not have this kind of policy. You should also check your deductibles. If you keep it low, premiums will be high. In short, to save money, try to increase your deductible to a certain amount that you think you can really afford to pay.

Keep an eye of the fine prints and understand what they mean. Did you know that claims for fender-benders, small dents or glass replacements could swell up the rates later on? With that said, how much more if you get into an accident or pulled over due to speeding violations. At all cost, try to avoid collecting speeding tickets, even if it’s just 10 mph on the average because it will ultimately affect your rates.

The experience of the driver is always taken into consideration during renewals. If your driving history is squeaky clean, and you haven’t had any accidents for the past few years, it’s a guarantee that you will enjoy cheaper rates. However, if you are at the other side of the story, charged with DUIs or DWIs, the chances of higher premiums are almost inevitable.

Apart from the driver’s experience, the car itself dictates how the insurance rates will come out. Statistics indicate that certain car models are just prone to road mishaps, and if you own one of them, surely, you get your fair share of the staggering insurance cost. It’s also the same concept used in determining the location or places that you spend most of your time. If the incidence of car accidents in your area is high, so does the rate.

In general, insurance providers are always ready to extend their help by making their policies affordable as possible. Discounts and price cuts are usually given to the deserving drivers. By availing of several insurance discounts, the insurance becomes affordable. Again, don’t forget to read the fine print and understand your rights as a policyholder.