What factors could cost my insurance premium to rise?


Insurance premium is tricky. What most people believe is that a lower premium means more savings, better deals –this is not necessarily true. A higher premium means more benefits, and sometimes that means more savings. The trick (or actually, critically recommended strategy) is to get insurance quotes, compare and contrast, ask around, get the facts before signing anything.

That said, a lower premium for more benefits is the general formula for success when getting auto insurance. You need to be aware of your premium and how its numbers rise, so here are a few factors that would raise the amount of premium you have to pay:

Marry a bad driver. While marriage, in itself, decreases risk factor, and therefore decreases premium, marrying a bad driver can actually raise your calculable risk. There are of course ways to remedy this. For instance, there are places that offer safety driving courses, which, upon completion would lower a person’s risk levels. Another option is to lower your spouse’s mileage factor; this can be done by opting to commute rather than taking the car everywhere.

Your own driving history could, of course, cost your premium to rise. Being in one or two accidents (or more) could significantly raise your risk factor. Violations while driving are not taken lightly by insurance companies. Each negative ‘point’ is a couple hundred dollars towards your insurance premium –running a red light, reckless driving, speeding, etc. The good news is that this only applies for moving violations. This means that any violations you have incurred while parked, such as a parking ticket, will not affect your risk factor.

The cost of your vehicle is a major factor. We’re not just talking about the higher cost of repairs for more expensive cars. Statistics show that more expensive vehicles cause people to drive faster, and therefore count as more of a risk. This is especially true for luxury and sports cars which are more popular these days.

Age. Statistics show that persons aged 23 to 65 generally fall into the same risk factor when it comes to the frequency of automobile related accidents. Lower than 23 and higher than 65, then you’ll see significant statistical changes when talking about accidents.

Geography also plays a part in this equation. Living in a congested area means the chances of accident are heightened. Of course, in a less congested rural area, the risk factor is decreased. If you’re dead serious about auto insurance, plan ahead where to live.