Why did my auto insurance go up? How to take control and get discounts
For good drivers, there is nothing more frustrating than getting a car insurance renewal and seeing the price go up when you haven’t had any claims. The first question that comes to mind is:
“Why did my car insurance go up? I had no claims and my car is only one year older!”
There are two sets of factors that can cause the price of your auto insurance to go up. Knowing what can cause your car insurance to go up in price when you haven’t had any claims can help you save money. When you understand the factors, you will be in a better position to negotiate the price and find an insurance company that offers the lowest cost. You can also read our article on the best cheapest cars to make sure if you are planning to buy a new car and wonder what the average cost of auto insurance will be.
How does the insurance company set the price?
The first set of factors that affect your auto insurance rate relates to the things that revolve completely around your situation, the items that are under your control.
10 Things That Can Drive Up Your Auto Insurance Renewal Cost
Your claims history and driving record.
History of convictions or traffic violations that cause surcharges.
Change of address, placing you in a new area that may be more expensive in terms of insurance.
New drivers added to the policy or changes to the main drivers of various vehicles on the policy.
Cancellation of a housing policy or another policy that makes you lose the discount for having more than one policy with the same insurer.
The removal of a vehicle from the policy. Sometimes you get discounts for insuring more than one car. If you take away your second car, the price of first car insurance could go up.
Job change. You may miss out on a group discount, career discount, or possibly change your distance to work, causing your rate to go up.
Medical conditions that increase your risk or restrictions that cause reclassification to high-risk insurance due to convictions such as drunk driving charges.
Mistakes. Yes, insurance companies can sometimes make mistakes. Never assume that the rate you obtained is the best rate or that it is necessarily correct. There are human and computer errors that can occur, so it is always worth reviewing the factors with your representative when in doubt.
Changes in the rates of the payment plan or in the structure of your insurance plan. Sometimes insurance companies change financing rates or add new charges for services that you may not have noticed. Take a look at your payment options and make sure you choose the one that best suits your needs. Some companies offer zero financing and others may charge up to 5% or more. This can affect your actual annual insurance cost.
The second set of factors relates to your car and the insurance company: the factors “beyond your control.”
Other Factors That Increase Auto Insurance Costs:
We will review all the possibilities so that you are in the best position to make decisions to start saving more money on your insurance and fully understand what affects your auto insurance premium and why it increased.
Your choice of insurance company and representative
In any circumstance, each insurer is slightly different in the way they perceive risks, which means that depending on their particular circumstances, where one insurance company can provide a lot of value, another cannot. Understanding the factors of how your insurance rate is determined will help you get the most out of your insurance company.