What are the various reasons for my car insurance premium to go up?


There are a number of reasons as to why your insurance rates keep fluctuating. While some of the reasons are quite apparent, some might not be as apparent as the rest. This might be the reason as to why you might want to look at certain aspects of your insurance and think where are the different areas in which you could potentially try and control the insurance costs. Many people might think that they know everything but in reality, they usually don’t know as much and might be paying more for their insurance than what they actually should be.

The apparent list of reasons is quite big in number. One of the main reasons for car insurance premiums to shoot through the roof is because of an accident. Road accidents occur frequently and can increase your insurance rates by quite a large number. In fact, it is possible to increase the insurance rates by as much as 26% alone! This is something that you need to remember the next time you feel the urge to go faster and think that nothing is going to happen. Unless you are willing to pay the price, don’t think about doing it!

The other reason for a rise in the insurance premium could have to do with your credit rating. If you have fallen behind on your bill payments, then you might have to pay the penalty on your car insurance. In fact, it is not unheard of for people to be paying more on their premiums simply because they have not been able to pay their bills on time. This is a reality in lots of places all across the country and is possibly the reason as to why people might end up in debt. Hence, plan wise financially and don’t take any decisions that might cost you a lot in the long run.

Finally, your infractions of the law are also responsible for causing an increase in the premium rates. If you frequently get pulled over for breaking rules and speed limits and things like that, it will end up costing you dearly. Drivers who are reckless on the road and have been caught in this regard will eventually end up paying a fortune in premiums alone. Hence, it is best to avoid being in this situation and try to practice defensive driving from the beginning.