Even if your income is stagnant, your car insurance rates are increasing. Every time you go to renew your car insurance policy you are shocked and trust me the shock is equivalent to a car accident or a theft. Car insurance companies are raising rates on your premiums almost every time you reach out to renew your policy. For all the safe drivers residing in California Massachusetts, New York, or Hawaii – car insurance rates are coming as mini attacks to everyone. So how much are you paying to cruise through the roads of your city? Want to know why you are paying that much for your car insurance?
The expert online car dealers have traced a pattern, to which below are the results:
Factors That Determine Your Car Insurance Rates
1. New Technology New Rates
The more advanced your car, the higher will be the rates for car insurance. As per experts, the average rate of a new car was $36,718 in 2019, the hiking rates of the cars are one of the reasons why you are struggling with higher car insurance rates. Yes, both are proportional. The basic math to this is, your car insurance agent and company look at insurance claims to see what is the cost to repair the car parts. If your car is expensive certainly the parts will be expensive and repairing them will also be expensive.
2. Your Credit Scores Matters
Apart from advanced features, various other factors go into finalizing the cost of your car insurance. The credit score is one of them, if your credit score falls (may it be any reason), it will hike up your insurance premiums. The decline in your credit scores will not impact your insurance premiums that vividly. In fact, California state law restricts insurance companies from using credit scores as part of insurance calculation.
3. Driving Violations or Tickets
Your car insurance company (at any cost) will determine that you are a safe driver. They pay attention to your driving speed and that you are not a distracted driver. If you are a safe driver, the probability of accidents is low to nill in your case. It happens (however rare), that you may violate the laws or get the tickets – this doesn’t make you a reckless driver. However, this leads to increased insurance. In defense, you might seek a higher deductible to lower your insurance rates.
4. Age Matters With Rates
This is a viable fact that age is a major role player in determining your car insurance rates. For teenagers who are still learning to drive, the insurance rates are higher. However, for people with minimal experience in driving, there is an increased possibility of accidents leading to hiked insurance rates. Also, for drivers over 70 years of age, the insurance rates are higher.
5. Lags In Your Insurance
The increased insurance rate can be the cause of your own negligence like you forgot to pay premiums or the credit you use for automatic payments expires (because you didn’t pay attention). Due to any reason, if your policy lapses, your insurance company will raise the rates from your next claim onwards.
6. Taking Up New Pin Codes
Shifting to a new location is exciting, especially if it is a better city. You will get to meet new friends, live a new lifestyle (probably better) and see new things. You start imagining your life even before you leave your city, but what you will not see coming is the cost of your car insurance policy. Moving to a new place impeccably affects the cost of your car insurance policy – it may fall or rise depending on the location.
7. Recent Car Accidents
If you recently had a major car accident, you are more vulnerable to increased car insurance policy rates. Though you might have got enough concerns from your loved ones after a car accident, still you are getting no regard from the car insurance company. It is because car insurance costs a lot in the pockets of the insurance companies.
8. Filing Comprehensive Claims
If you have complete insurance coverage, you may (at some point), come to a comprehensive claim. It is a wide spectrum that incorporates the repair of something other than crash damages. Like broken windows, a burglary, damage from hail, a tree falling on your car, etc. You won’t witness the hike in your insurance rate for the first time, you might face the same after filing two or three more.
In The End
Car insurance is your lifetime headache once you have purchased a car, obviously, you want your car insurance premiums to be pocket-friendly, but. If the opposite is happening you might want to take some immediate measures. Aforesaid are some reasons why your car insurance rates are skyrocketing, see what can you do to curb them.