How are Car Insurance Premiums Increased?
When your car insurance premiums decrease, it can be fairly distressing. Nobody likes the prospect of paying more for insurance each month. Knowing why your rates increased can be a good way to get your premiums back down to a reasonable level.
Rates will increase if any factor affecting the chances of a driver's accident changes in a negative way. For instance, if you receive a speeding ticket, your rates will go up, and if you buy a more dangerous vehicle, you can expect to pay more. If you're paying for comprehensive car insurance coverage, your rates might increase if your neighborhood has had higher than average rates of car insurance theft. Anything that could cause your insurance company to see you as more of a risk will be bad for your insurance rates.
Insurance rates may also increase when it comes time for your policy renewal due to the state of the car insurance market. If your car insurance rates go up and nothing seems to have changed about your risks, you should immediately look for another policy. By shopping for car insurance online, you can often get your rates back down, or even lower than before.
Make sure that your new car insurance policy is as protective as your old car insurance policy, and be sure to take the time to speak with your new insurance agent before signing up. You can often negotiate your way down to lower premiums simply by asking for car insurance discounts, particularly if you're driving a safe car.
Discounts are available to all drivers, although they differ by insurer. Many insurers offer discounts for vehicles with special safety features, or drivers who take driving classes. Taking a few minutes to look for discounts could save you a lot of money in the long run.