Events That Can Cause Your Auto Insurance to Increase
As a responsible driver, you know that auto insurance is necessary. Car accidents happen every day, and having a good insurance policy can protect you from the financial fallout of a collision. However, certain events can cause your auto insurance rates to go up. Learn about five events that can cause your auto insurance to increase.
Buying a New Car
Your auto insurance rate may go up if you purchase a new car. Newer cars might be more expensive to replace or repair in case of an accident. While you may be excited about your new vehicle purchase, it’s important to factor the potential insurance costs into your car-buying budget.
Moving
Your auto insurance rate may also go up if you move. Several factors, including your zip code, determine auto insurance quotes. Moving to an area with a higher crime rate or heavier traffic may increase your insurance rate. Alternatively, you may get a lower rate if you move to a safer neighborhood.
Citations
If you’re a safe driver, you may not have to worry about this one. However, your auto insurance rates may increase if you’ve recently received a traffic citation. The reason for this is simple - insurance companies see risky drivers as more likely to get into accidents, charging them more for coverage.
Accidents
Unfortunately, accidents happen. If you’ve recently been in an accident, your auto insurance rates may increase, even if the accident wasn’t your fault. Insurance companies may view you as a riskier driver, leading to higher rates.
Credit Scores
Your credit score can also affect your auto insurance premiums. People with lower credit scores are viewed as more of a risk and, therefore, charged higher rates for coverage than those with good credit.
Claims
If you submit a claim on your auto insurance policy, your premiums may go up. Claims indicate that you’re using your insurance policy and may make additional claims for future events. Insurance companies may increase your rates after you make a claim.
While several factors can cause your auto insurance rates to go up, there are also things you can do to mitigate these risks. Drive safely, choose your car wisely, and be aware of the factors that can impact your car insurance premiums. Being proactive and informed can help you keep your car insurance rates reasonable and protect yourself on the road.
Learn more about an auto insurance policy today.
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