Why Did My Auto Insurance Go Up?
The cost of everything is always going the wrong direction – up. Milk, smart phones, and yes, sometimes even auto insurance. There’s little you can do about the cost of your cell phone or your groceries, but understanding the different reasons why your auto insurance is going up can help you control costs.
Credit Score Changes
Your credit score is just one factor in determining your auto insurance premiums. As your credit score goes down, your insurance rates go up. The easiest fix is to pay your bills on time. If you’re already doing that, you may want to pull a copy of your credit report to check for mistakes and reporting errors.
Changes in Your Commute
Did you move or get a new job? If either change resulted in a longer drive for you, your rates will be affected. More miles on the road means you have a greater chance of being in an accident. The result is a higher rate for your Watertown, MA auto insurance.
Traffic Violations and Accidents
This may seem like an obvious reason, but people often forget it. Points on your license and claims on your insurance directly impacts the premiums you’ll pay.
Some, but certainly not all, insurance companies charge “older” drivers higher premiums as statistically, they’re more likely to get into an accident. What constitutes older? Brace yourself – 50 and up. You can’t change your age, but you can always look for an insurer who doesn’t have that policy.
The Age of Your Car
Newer cars are more expensive to insure for one simple reason – they’re more expensive to replace. Ask your insurance agent if you qualify for any additional discounts with a newer car thanks to extra security and safety features.
Your Relationship Status
No, this isn’t a Facebook thing. Studies have shown that single people have more expensive and more frequent accidents than married people. Whether the single life is new (again) or you’ve been single for a while, chances are, it’s affecting your auto insurance rates.
Did your child finally hit the ripe old age of 16? Adding an inexperienced driver to your policy, while necessary, will increase your premiums. The good news is that if they manage to stay out of accidents and trouble with traffic violations, your rates could go down over time.
Reasons Outside of Your Control
If you’re a safe and honest driver, who’s neither too young nor too old, still married, and with zero changes to your driving or living situation, your rates may still increase. The rising costs that are part of insurance like medical expenses, vehicle replacement and repair, and more affect everyone. On the other side, insurance fraud is a big problem. Every time a fraudulent claim is paid, it’s that much more money your insurance company doesn’t have to pay legitimate claims. Even if nothing changes for your personal situation, your rates can still increase because of this.
Now that you know what causes your rates to go up, you may have a little more control over the increase in the future. If you want to make sure you’re paying the best price for the best coverage, call us at Click Insurance today. We can get a quote for a new policy and compare it to what you currently have.