Know about them and save yourself some money
1. Traffic ViolationsThis is a very common reason. Get caught breaking traffic rules, and you must expect your insurance rates to go up. Both minor and major violations cause this. In case you’re wondering, failure to yield, following too close, improper backing or passing, speeding and a few others count as minor violations. Attempted felonies, open bottles, careless driving, drag racing, driving under the influence, fleeing from the police, vehicular homicide, passing a school bus, driving with a suspended license and driving the wrong way fall under major traffic violations.
2. At-fault accidentsYour insurance rate is very likely to increase if you cause an accident and a claim is filed. But it also depends on the insurance company since some allow for a small payout buffer. Some even have accident forgiveness that let you have one at-fault claim without increasing your premium. Check with your agent about your coverage and its costs.
3. Comprehensive claimThis is not very common, but some insurance companies are implementing an increase in premium if a comprehensive claim is filed. You will need to check the details regarding this with your insurance agent. The companies that implement this usually do it if over $1000 is paid out or more than three comprehensive claims have been filed in three years.
4. Getting olderUsually getting older reduces your insurance rates. There are also senior citizen discounts that kick in after you cross age 50. But not all the time. In a lot of cases, the insurance rate goes up once you cross the age of 70. Insurance companies seem to rate elderly drivers in the same manner that they rate teenage drivers.
5. Letting insurance lapseCar insurance lapsing is always bad. Companies usually allow a grace period that will enable you to renew a lapsed policy within a limited period of time. In case you do renew, then your rates usually aren’t affected, and the most you will be charged in addition to the premium is a small fee. And this is allowed only if you’re reinstating the same policy. But if you let the insurance lapse, then you may need to buy expensive, high-risk insurance. And that is going to really cost you.
6. Changing addressesDid you know that your location plays a role in the insurance rate you are charged? Yes, it does. If you move out of your city or your state, then this could cause an increase in your insurance rate. This happens depending on the claims that usually arise from the area you have moved to. So, those living in major metro areas will be more expensive to cover than those living in the suburbs.
7. Credit Score DropSome insurance companies also check your credit score in order to determine your insurance rate. So if you default on a loan payment, or don’t pay your credit card bill on time, then the drop in your credit score could cause your insurance rate to go up. Check with your insurance agent if your coverage provider operates in this manner. Keep in mind that insurance rates aren’t simple to calculate. A lot of different factors go into figuring them out. These make the rates subject to regular changes. Insurance companies could also check all the influencing factors during renewal and recalculate your insurance premium accordingly. But here’s what you can do if your rate goes up – check with other providers for cheaper insurance rates.