Navigating the complex world of auto insurance can be frustrating, especially when your premium seems to rise for no reason at all.
Though it is difficult to keep track of the many factors that dictate a premium, the good news is that increases are anything but random. Actuary scientists use mathematics and statistical data to determine your probability of making a claim. If the probability rises, your premium will likely rise as well.
Some changes occur during across-the-board increases, which your insurer and state department will decide based on state-wide data. Other changes are decided for your personal situation. Here are a few reasons why your auto insurance premium might increase:
New Home Address
The location where you live has a huge impact on your auto insurance. If you’ve recently moved from a small town to a big city, this could be the reason for your increased premium.
This is because densely populated cities have higher rates of car accidents and vandalism. In an insurer’s eyes, this puts you at higher risk.
New Car
Similarly, a change in the vehicle you drive can increase your premium. A newer and more expensive model will cost more to cover than a cheaper, older car.
On the other hand, purchasing a used car can also be a factor for increased rates. If the vehicle has a history of accidents or mechanical failures, the insurer might consider this a high-risk car to cover.
New Driver on Your Policy
One of the most common causes for an increased premium is adding a new driver to the policy.
Statistically speaking, people are most likely to get into an accident within the first few years after getting their license. This is why teen drivers have the most pricey premiums.
So if your son or daughter has just started driving, you can reasonably expect to pay more for auto insurance.
Claim History
Finally, and most reasonably, your driving record and claim history will drastically affect your premium.
Those who have gotten in several accidents in the past couple years can expect increased rates, even if they were not their fault. Similarly, those who receive tickets for things such as speeding, driving under the influence, or reckless driving can have higher rates. If the insurer sees the person as a severe risk, they may be denied coverage altogether.
Filing an abundance of claims can also increase your rates. If possible, you should pay for any minor damage out of pocket. A cracked windshield, for example, is not worth filing a claim over.
Comprehensive Auto Insurance in MD, WV, PA & VA
If you’re looking for an insurance provider that is thorough and easy to understand, look no further than Antietam Insurance! Our auto insurance policies can protect the most valuable assets in your life without charging you mysterious price increases. Call today for a quote!