Your car insurance is designed to help you recover from losses while also generating profit for your insurance provider. Your provider often assesses the amount of risk you introduce, writing coverage and pricing it appropriately based on years of research and policy writing.
If the risks you introduce change over time, your insurance provider may increase your premiums to offset the increased potential for loss.
You can always find the best rate available by using a car insurance quote comparison tool. Enter your zip code above to get started!
Controllable Factors That Cause Car Insurance to Increase
Your car insurance can increase due to several different factors, and many policyholders are experiencing increases frequently.
There are factors within your control that can increase your car insurance, such as:
- The number of miles you drive annually
- The anti-theft devices you install
- The number of claims you file
- The type of car you drive
In the United States, vehicles have become an important part of everyday life for many people; commuting to work has never been easier, and people can live farther from their office.
However, the number of miles driven annually increases the potential for a loss, since the car is on the road and being frequently operated. Within the traditional working age groups, annual mileage can be double that of younger or older drivers.
There are other ways to reduce your potential for loss, such as installing anti-theft devices and driving a safer car. Some vehicles come with standard anti-theft devices equipped, but there are aftermarket parts that can be installed to increase your car’s security.
Another big factor you should consider is the number of claims you file under your coverage.
Every time a claim is filed, your claim history is going to show another loss, which increases the risk you introduce to your provider. Over time, this can cause you to be classified as a high-risk driver, making coverage more expensive.
Uncontrollable Factors That Cause Car Insurance to Increase
In addition to the risk factors you’re able to control, there are often factors that are outside your control, and these can cause your premium to increase. Some of these factors include:
- The behaviors of other drivers
- Theft and vandalism within your living area
- Your age, gender, and marital status
Your actions on the road may be safe and logical, but other drivers on the road may not act in the same manner.
Drivers may not be paying attention or may be inexperienced, which can lead to accidents and losses you are not responsible for but still may need to claim if they do not have coverage.
The area that you live in and garage your vehicle can also impact your insurance pricing. While you may choose to move to another area, it’s not often practical to relocate your family just because of car insurance prices.
However, areas with higher levels of theft, vandalism, and accidents may end up requiring higher premiums to offset the potential losses.
Additionally, your age and gender are often factors looked at when trying to determine your pricing. Statistically, certain age groups are more prone to accidents, and your gender and marital status can both affect your potential for losses.
Ways to Lower Your Car Insurance Premiums
There are many ways you can help reduce your insurance premiums or keep your premiums from increasing, such as:
- Carrying a higher deductible
- Driving safely and reducing distractions
- Garaging your vehicle in a safe and secure location
- Shopping around for coverage quotes
One of the simplest ways to see a change in your policy costs is by adding a deductible or increasing the deductible on any applicable coverage. Some coverage options carry a deductible, which is a portion of the loss you cover to reduce your provider’s expenses.
By assuming more of this risk, say $1000 of a loss instead of $500, you reduce the costs for your provider; this often leads to reduced premiums.
Driving safely and reducing distractions is another way to help reduce your risk since safe drivers are often alert and can react when a loss event is occurring. Focusing on the road may allow you to avoid a collision or road hazard, which reduces the number of claims filed.
Additionally, you can store your car in a secure garage, whether at home or another location. These secured locations offer additional protections that parking on the street may not, and this can help reduce the occurrence of theft and vandalism.
Finally, make sure to shop around for coverage quotes at least once a year, comparing pricing and coverage options from three or four providers.
While your situation may not change annually, seeing what different providers offer allows you to choose the coverage that meets your needs at the best price point.
Insurance Rates May Vary from Company to Company
Determining how much your policy should cost is a science that your insurance provider has worked to perfect over their operational years.
Each potential policyholder is looked at based on the risks they introduce to the provider, the potential they’ll file a claim, and their driving record.
When insurance providers write car insurance policies, it’s understood that claims may happen.
The premiums charged are a prepayment for losses that can occur in the future, and this amount may not be enough to cover the losses you experience which can lead to increases in your premium pricing in the future.
It’s important to compare coverage quotes from multiple providers since each provider will assess your risk differently and charge you for coverage based on these factors.
If you’re unhappy with your current coverage, you can look at quotes and determine if you want to switch to a new provider. Compare quotes right now by entering your zip code below.