Wednesday, June 15, 2022

Why Does My Car Insurance Keep Going Up

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Look For Discount Opportunities

Why Do My Car Insurance Rates Keep Going Up?

When you look at your policys declarations page, youll notice a discounts section, and if that section is more or less empty, you should look into potential discount opportunities offered by your insurer. Potential discounts you should expect to see offered are:

  • Multi-policy discount: If you have two or more policies with the same insurer, like home and auto and life insurance, that can potentially save you anywhere from 20% to 30% on premiums, depending on the insurer

  • Claim-free discount: Some carriers will offer you discounts for not filing claims

  • Protective devices discounts: If your home is fitted with deadbolts, smoke detectors, fire extinguishers, and fire and burglar alarms that contact law enforcement directly, most insurers will offer you a nice discount

  • First-time homebuyer discount: Most insurance companies will offer discounts for new homebuyers

  • Senior citizens discount: If youre 55 or 60 and older, your insurer may offer up to 10% off your premiums

  • Long-term policyholder discount: If youve been a policyholder with the same insurer for five years or more, its common for insurers to offer 10% loyalty discounts

Other Times It Pays To Shop

You’ll find substantially cheaper car insurance at other times in your life as well:

Your kid goes to collegeIf your kid heads off to a college that is at least 100 miles away and doesn’t take a car with him, your rate should drop. Some insurers discount your rate as much as 10%.

You move to another state — State laws and different claims frequencies mean some cities will be much, much cheaper than others. A bad driver in Portland, ME, will probably pay less than a good driver in, say, Louisiana.

Speeding Tickets And Other Moving Violations

Violations on your motor vehicle report, especially a DUI or multiple speeding tickets, tell your insurance company that you’re more likely to have an accident than a driver with no violations. The more violations you have, the higher your risk to file a claimresulting in auto rate increases. Even a minor moving violation could increase the cost of your auto policy. Keep in mind that insurance companies won’t increase your rate due to a non-moving violation like a parking ticket.

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You Sold Your Car To Your Son But Still Carry The Insurance On It

Can I insure a car not in my name? is a common question from readers.

In general, you cant carry insurance on a vehicle in which you dont have an insurable interest.

Typically those with an insurable interest are the owner of the car, lienholders and co-signers meaning those who would be affected financially if something happens to the vehicle.

Since you are no longer the cars owner and no longer have insurable interest, its time for the new owner of the car your child to buy car insurance for the vehicle. If hes still a minor, you may have to be on the policy with him. Minors typically must have a parent or guardian involved in the auto insurance contract.

You could face problems submitting a claim if you have failed to tell your insurer about the ownership change. Or worse, the auto insurance company could say you hid the change as a scheme to get lower car insurance rates, which would qualify as insurance fraud and a reason for it to deny claims and cancel the policy.

Choose A Higher Deductible

Why Does My Car Insurance Premium Go up on Older Vehicles?

The lower your policys deductible is, the higher your premiums will be, and vice versa. If youre currently paying a $500 or $1,000 deductible and your rates went up, a good way to get those down is to ask your insurance company about raising your deductible. You only pay your deductible when you file a claim, and if youre a responsible homeowner whos never had to file a claim before, then increasing your deductible may be a good option for you.

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Why Rates Go Up

  • More miles drivenLower gas prices in recent years mean many American families can afford to drive more. But increased time on the road leads to more accidents and more insurance claims, and insurance rates are adjusting throughout the country to better cover these expected costs. For the safety of you and your family, always make sure you are following good driving habits: Buckle up and obey all traffic laws, such as speed limits, traffic signals and stop signs, and put your smart devices away when you’re behind the wheel. Turn your phone and other smart devices off so you’re not tempted to glance at a notification or incoming call. Even a glance takes your eyes off the road and could lead to danger.
  • Distracted drivingAccording to a State Farm® survey, almost one-third of drivers access the internet while driving, and 10 percent record video with their phones. Even voice-activated car commands can divert cognitive abilities and attention. Rethink using the phone while driving, and don’t attempt anything else, such as eating or changing radio stations or podcasts. If you have a teen, be sure to talk with them about safe driving habits: The highest proportion of distracted drivers involved in fatal crashes are 15- to 19-year-olds.
  • Your Home Is Due For Upgrades

    Even if youve had the same insurance company for five years, you pay your premiums on time, and you never file claims, your insurer may still conduct an inspection on your home when you renew your policy.

    Your insurance inspector will likely conduct at the very least an exterior inspection of your home, focusing intently on the roof, exterior walls, and your homes foundation. If your inspector determines that your homes structure is in bad condition and could use some upgrades, they may give you a specific timeframe to make those updates, typically 30 days. If you don’t make the updates to your home, you may see a rate increase on your next bill.

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    Reasons Why Auto Insurance Rates Are Going Up

    Why auto insurance rates are going up.

    The cost and frequency of auto insurance claims are rising. To help cover these costs and help make sure you and your assets are properly protected, auto insurance rates are increasing industry-wide. Here are 3 reasons why auto insurance rates are going up, along with what you can do to help manage your rates.

    Shop Around For Better Auto Insurance Rates

    Why Does My Georgia Auto Insurance Keep Going Up

    Maybe you first took out your auto insurance policy when you were fresh out of driving school, or when your credit wasnt in great shape. Now that youre older and wiser, you dont have to be stuck with the same high rate. In fact, you dont have to stick with the same insurance company.

    Periodically shopping around for the best deal on car insurance is a great way to pay less. Today, its easy to compare quotes online. Just make sure you choose a reputable company and adequate coverage.

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    Why Your Homeowners Insurance Rates Went Up

    If your rates went up since last months bill, or you renewed your policy just to find out that your premium is $300 higher than it was last year, youre probably asking how that happened. Its especially perplexing if you have no claim history and your rates had been the same for a number of years, but there are several reasons why this may have happened.

    Reduce Coverage On Older Cars

    One easy way to save money on car insurance is by downgrading your coverage. Of course, you dont want to put yourself at risk by becoming underinsured on a valuable vehicle. If you have an older vehicle thats paid off, on the other hand, dropping down to liability coverage only could be a smart financial move.

    To know for sure, find out its actual cash value and determine if potentially losing that amount in a total loss is worth the monthly savings on your premium.

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    Changes At The State Level

    Each state regulates car insurance, and each state has its own coverage requirements. Sometimes there are particular things going on in your state that you have no control over that can impact your car insurance rates.

    Think of everything from natural disasters to insurance fraud and more, which could result in higher costs for insurers and may result in a higher rate as well. Each state also has minimum liability requirements and may have a no-fault policy or an at-fault policy when it comes to accidents. These variables can impact your car insurance rates.

    Why Did My Auto Insurance Go Up

    Why did my car insurance go up?

    Even if youve been a safe driver, your car insurance rates can go up. Your frustration is understandable, and if youre wondering why your car insurance keeps increasing especially if you didnt file any claims and you steadfastly followed the rules of the road were here to clear up any confusion.

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    Why Does Your Auto Insurance Keep Going Up Every Six Months

    Every time your policy is up for renewal, the rate can be adjusted, which explains why auto insurance goes up every six months. If you get a great deal on your auto insurance, consider signing a one-year policy to keep your rate as low as possible for as long as possible.

    Are you interested in the reasons for auto insurance premium changes in the middle of a contract? Adding coverage, purchasing a new car, or adding a teen driver can all be a cause.

    The Type Of Car You Drive

    This is one thing thats well within your control. Insurance companies will want to know if youre driving a safe, boring car or a souped-up speedster that tends to get in a lot of accidents or gets stolen a lot.

    It doesnt matter how safe you feel in your car. If youve chosen a car that the insurance companies deem risky, youll pay for it. Many times, smaller, sportier cars get the brunt of this.

    Also, the rumor about a car being red costing more in insurance is completely false. According to Esurance, the year, make, model, body style, and the age of your vehicle are what matter when it comes to the car you drive.

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    You Lend Your Car To A Friend For A Few Months And Dont Notify The Insurance Company

    Your car insurance policy typically covers a friend who drives your vehicle occasionally, but its a different story when you loan your car out for a long period. The vehicle is now housed someplace other than your residence, and someone else is acting as the primary driver of the car. Your auto insurance company wants to know about those circumstances.

    If your insurance companys rules allow, you may be permitted to add your friend as a driver to your auto policy. However, most car insurance companies dont want to add a person outside of the household. If that is the case, your friend should consider insuring the vehicle. Some insurance companies will allow someone to insure a car that he doesnt own, as long as the owner of the vehicle is listed on the policy.

    If your friend crashes your vehicle without the insurance company being aware and agreeing to insure the friend, it can deny claims because you concealed pertinent information about the real driver and vehicle location. That can leave you and your friend on the hook for damages he caused.

    Your Sex Marital Status And Age

    Why does my auto insurance keep increasing

    Once again, this isnt really something you can control, but insurance companies will look at historical averages of accidents based on your demographic and factor that into your premium.

    Males, for example, tend to pay more. Your auto insurance provider will look at your gender, marital status, and age. And guys just get the short end of the stick when it comes to car insurance, especially early on in their driving careers, because of historic averages with accidents and traffic violations.

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    Your Auto Insurance Company Raised Your Rates Because You Got Into An Accident Or You Got A Ticket

    Your car insurance can go up if youre involved in an accident whether you caused it or not. You rates can also go up if your insurance company finds out you got a speeding ticket or other traffic citation.

    Your car insurance premiums probably wont increase right away after a ticket or accident. They may go up when it comes time to renew your policy, though.

    This is one of the main reasons why some people choose to pay for minor car accidents out of pocket. In many cases, it ends up being cheaper than filing a claim. Thats because claims stay on your insurance record for three years in most states. And you could pay higher rates related to those claims for that entire period.

    So, if you recently got into an accident, that could be why your car insurance went up.

    The same is true of tickets or citations. Both tickets and citations can make your car insurance go up, especially if youve received more than one in the last few years, or if the ticket or citation was for something severe.

    For example, driving 40 miles per hour in a 30 mile-per-hour zone likely wont raise your car insurance rates as much as driving 100 miles per hour in a 30 mile-per-hour zone. Similarly, getting a ticket for failing to signal shouldnt hurt your premium as much as a DUI conviction.

    Individual Risk Factor Weighting

    Finally, your insurance company may re-evaluate how risky each of the characteristics, or factors, of your policy is, based on updated data. An insurance company may react to the results of such an analysis by increasing specific rating factors .

    As you can see, there are some obvious and some not so obvious reasons for the price of your car insurance to go up every year. Whatever the reason is, be assured that not all insurance companies will charge the same amount for the same coverage. Thats why its important to shop around occasionally for a better price if you feel your insurance has increased too much. Annual increases are very typical across the industry, but the way that your risk factors are viewed by any particular company may vary.

    To make sure you arent paying too much, you should know yourcoverage anddiscounts to ensure you are getting the best price for the coverage you need.

    Call for a quote © 2021 Plymouth Rock Assurance. All Rights Reserved.

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    How Often Do Rates Go Up

    Most car insurance policies are in force for a year and then must be renewed. Once your renewal date comes up, there is a good chance your rates will change.

    When your policy expires, your insurance company reevaluates your risk factors as well as other factors that impact their cost of doing business. If accidents, car thefts and claims have gone up in your general area, it could result in a premium increase.

    And as inflation pushes up the cost to repair or replace vehicles, insurers will pass those costs on to their customers.

    But rates dont go up for everyone. Because insurance rates take into account personal risk factors such as a good driving record and a vehicle that is loaded with advanced safety features your rates may stay the same or decline even if your car insurance company is raising overall rates.

    The national average for a car insurance policy in 2020 was $1,904, according to our data. But that dropped 3% in 2021 to an average cost of $1,839. Last year was one of the few years where car insurance costs went down.

    This was because they were experiencing far fewer claims as the pandemic changed driving habits, with many customers driving dramatically fewer miles.

    A Change To Your Policy

    Why Did My Auto Insurance Rates Go Up?

    Have you changed your insurance coverage in some way? Maybe you switched from liability only to a full coverage policy with collision and comprehensive coverage, moved to a different neighborhood, or added a new driver. Any change you make to your car insurance policy can result in a price increase based on your risk profile.

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    What Causes Your Insurance Premium To Go Up

      Eric is currently a duly licensed Independent Insurance Broker licensed in Life, Health, Property, and Casualty insurance. He has worked more than 13 years in both public and private accounting jobs and more than four years licensed as an insurance producer. His background in tax accounting has served as a solid base supporting his current book of business.

      If you have any type of insurance whether its for your home, car or health chances are youve received a renewal bill in the mail and asked yourself, Why did my insurance premium go up? While some premium increases can be attributed to across-the-board rate hikes, which happen when an insurer and state department of insurance agree on a new rate plan for that year, others have more to do with you specifically caused by factors such as your driving record, medical history and credit score.

      Construction Costs May Have Skyrocketed

      Your rates are generally determined by the coverage amounts in your policy. Your homes rebuild cost, or dwelling coverage, is a key determiner of how much youll pay in premiums the higher your dwelling limit, the higher your premiums will be. A key indicator of your homes rebuild cost is the price of local construction materials and labor, and when construction costs increase, your dwelling limit may need to increase as well.

      Construction costs can jump for a variety of reasons maybe they went up because a number of weather catastrophes increased demand and shortened supply, or maybe a proposed tariff increase caused the spike in construction costs. Be sure to check your policys your home insurance company is required to inform you before they make any changes to your coverage, but they may not tell you that your rates are about to spike.

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