Consider These Factors to Understand Auto Insurance Increases
No one wants to see their auto insurance premium increase. AAA advises drivers that there are some precautions they can take to help reduce potential impacts to their wallets.
Being educated about what factors may raise auto insurance rates can help consumers avoid an unpleasant surprise. The considerations that determine an insurance premium depend on a variety of factors. It’s important for drivers to know that some of those situations are within their control.
Reasons Why Auto Insurance Premiums May Go Up
- Accident involvement. Being in an accident could increase your premium. If alcohol was involved, the rate may be even higher.
- Traffic violation. Getting a traffic ticket is one of the most common reasons insurance rates could be raised. The amount of an increase may depend on the violation.
- Car Purchase. The car you choose may impact your insurance rate. Some types of cars are more expensive to repair than others. If the model of car you drive is more likely to be stolen, this may also impact your premium.
- Adding teen driver. Adding any driver to your policy could raise the premium, but teenagers may raise it even more.
- More miles. The more miles you drive your car each year, the more at risk you are of becoming involved in an accident.
- Policy lapse. When you don’t pay your insurance bill or renew coverage, your insurance may lapse and result in an increased premium. Coverage is only provided when the policy is in force.
What can you do?
Contact your insurance agent and review your coverage every year. In addition:
- Consider combining your policies. Many insurance companies offer discounts for bundling policies.
- Purchase umbrella liability insurance to protect yourself against claims that may exceed your current coverage limits. Umbrella policies generally offer $1 million or more in additional coverage at reasonable rates.
To find out more about auto, homeowners, condo or renters insurance, call your AAA agent or 1-800-222-1469 to see what discounts you may be eligible for and what type of coverage you might need.