Top Reasons Of Your Car Insurance Rate Changes

By | September 20, 2022

While this may seem arbitrary, there are real reasons why you may see your price go up and down.
However, they can also change based on a variety of reasons that are largely beyond your control.

1. Driving record

Incidents such as accidents (even if you were not at fault), speeding, reckless driving and drunk driving can increase your insurance premiums.

If you’ve made a claim in the last few years, this may also lead to an increase in your premium. You’ve heard it before, but try to stay alert and maintain good driving habits. As time goes by, past claims on your record will decrease if you keep losses to a minimum.

2. Credit Score

Your personal insurance score, based in part on your credit score, is used in combination with other factors to help determine your home and auto rates. This practice allows insurance companies to cover more people and promotes fair rates for all customers. If you believe your credit score contains incorrect information, contact Equifax. Your insurance company may reassess your premium based on corrected credit information.

Also Read – How Much Does Auto Insurance Cost Per Month

3. How much do you drive?

It’s quite simple: the more you drive, the more opportunities you have to have an accident. If your lifestyle changes and you drive less, let your insurance company know as you may qualify for lower rates.

4. The car you drive

In general, it costs more to repair a new car after an accident. New cars are also at a higher risk of being broken into or stolen. So if you’re thinking about buying that dream car you’ve always wanted, talk to your insurance company about how it will affect your rates. Keep in mind that not only luxury cars are at high risk of theft.

5. Adding a driver to your policy

All of the above factors that relate to the next driver of your policy can ultimately affect your rate. As you can imagine, adding a teenage driver can generally increase your rates due to the high risk associated with new drivers.

Afraid to insure your teenage driver? If they have a GPA of B or better, they may qualify for our good student discount. Get started with an auto insurance quote and see how much you can save.

Find out more about how to get the best insurance for a new driver.

6. Statistics of the place where you live

Insurers take into account factors outside of your car and personal driving habits when determining your rate. For example, the following factors can cause your insurance bill to increase for seemingly no reason at all:

  • More accidents – often from inattentive drivers
  • More uninsured and underinsured drivers on the road
  • Insurance fraud
  • Increased number of natural disasters

7. Inflation

Insurance companies must take these increases into account when determining premiums. Learn more about how inflation affects insurance costs.

8. Your discounts have changed

Car insurance companies may offer an introductory discount when you buy your first policy from them. Or maybe they started charging to get a paper bill. Check your statement and contact your insurance company if you have any questions.
It’s important to shop around to make sure you’re getting the best value. Liberty Mutual offers an extensive list of car insurance discounts – from going paperless to signing up for a new policy before your old one expires.

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