There are several factors that can increase the rate of your auto insurance premium to a great extent. While some factors are out of your control, there are quite a few factors which you can control to a reasonable extent. For example, the auto insurance premium can be high in those states where the rate of accidents is very high or the condition of the roads is bad. In other words, states which usually experience hazardous weather conditions, whether it is fogginess or excessive rain, or states which usually have a large number of vehicles on the road, have higher auto insurance premium. Similarly, the minimum liability insurance that is mandatory for every driver driving a vehicle on the road varies from one state to another.
Another factor that could increase your auto insurance premium is your driving history. If you have quite a few speeding tickets to your credit or have traffic violations noted in your driving record, you will get a higher insurance premium. This is because such a driving record indicates a disregard for traffic laws which could translate into greater risk of accidents. Auto insurance companies usually try to calculate the risk involved and charge higher auto insurance premiums on those individuals who are more likely to get into accidents and later make insurance claims. Similarly, if the driving record shows that you have made insurance claims in the last 2 or 3 years, your auto insurance premium goes up two notches.
A bad credit history can also lead to increase in your auto insurance premium. This is because, if you have a bad credit history, you are more likely to miss out on the timely and consistent payment of the auto insurance premium. Also, someone with a good credit history is looked at as a more matured individual while someone with a bad credit history is perceived to be more reckless, and thus, representing a greater risk for the auto insurance company.
Another factor that can increase your auto insurance premium is the car which you are driving. If you are driving a SUV or a vintage car, both of which are expensive when it comes to repairs, your auto insurance premium will automatically go up. Similarly, SUVs can actually push individuals to drive faster. SUVs therefore, represent greater risk for auto insurance companies too, due to which higher premiums are charged in their case.
