Compare-autoinsurance.org has launched a new blog post that outlines some unexpected factors that affect car insurance costs and what drivers can do to pay less on their premiums.
For more information and free car insurance quotes, visit https://compare-autoinsurance.org/why-did-the-price-of-car-insurance-went-up-and-what-drivers-can -do-to- take control/
It can be frustrating for drivers who have no claims to get auto insurance renewal and see the price go up for no apparent reason. Many factors can increase the price of auto insurance. Some factors are related to things that revolve entirely around the situation of the insured, the elements under their control. Other factors are beyond the control of the insured.
Some of the most common factors that can cause insurance to increase include:
Claims history and driving record.
- History of convictions or traffic violations.
- Postcode change.
- New drivers added to the policy.
- Termination of the housing contract, or other contract resulting in the loss of the multi-contract discount.
- The removal of a vehicle from the policy, resulting in the loss of the multi-car policy reduction.
- Change of employment resulting in the loss of a group or professional discount.
- Certain medical conditions.
- Mistakes made by insurance companies.
- Changes to payment plan fees or insurance plan structure.
Factors that increase premiums and are beyond the driver’s control include:
- Liability claims paid by the insurance company. If the previous year or years have shown a steady increase in the amount insurers have paid for claims, then they can make certain adjustments.
- Collision, vandalism or increased claims in the area. Sometimes, due to changes in traffic patterns, weather conditions, or if areas become more congested over time, or a variety of other factors, an area may begin to see an increase in claims. In these cases, insurers will adjust their rates.
- An increase in the rate of car thefts in the region. Car thefts impact both new and old cars and whenever major stolen vehicle annual reports are released; insurance companies will be sure to take note. Drivers who own car models that are susceptible to theft should consider adding anti-theft devices or vehicle engraving and get a discount to offset the increases.
- Uninsured drivers. The national rate of uninsured drivers fell from 12.3% in 2010 to 13% in 2015. Insurers pay billions of dollars every year for claims made to uninsured drivers. To offset these costs, insurance companies will increase premiums for all policyholders.
- Increased repair costs. Newer cars are equipped with sophisticated devices and gadgets that are expensive to repair or replace. In addition, some insureds own older vehicles whose parts are more difficult to find on the market.
- Changes in credit score or underwriting. Sometimes new factors are introduced into insurance rate calculations. In some cases, files are not updated to include all discounts and changes since the last renewal, which may result in increased premiums. An example is the credit rating. Most insurance companies use credit score to determine insurance rates. A bad score will result in higher insurance costs.
- General increase in the subscription rate. If an insurance company is experiencing overall losses that exceed its expectations, or if it has not reviewed its policyholders’ rates for several years, it will increase rates to remain profitable.
To save money on insurance, policyholders should get help from their insurance agents or brokers. To verify where the increase is coming from, policyholders can ask their agent to quote another car instead of their own, if they believe the vehicle is the reason for the increase. If policyholders think this is the area they live in, their agents can simply get a quote with a changed zip code. Agents can also help by consulting other insurance companies for better deals.
For more information, money-saving tips, and free auto insurance quotes, visit https://compare-autoinsurance.org/
Compare-autoinsurance.org is an online provider of life, home, health and auto insurance quotes. This website is unique because it does not simply stick to one type of insurance provider, but provides customers with the best deals from many different online insurers. This way, customers have access to offers from multiple carriers in one place: this website. On this site, customers have access to insurance plan quotes from various agencies, such as local or national agencies, brand name insurance companies, etc.
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