It’s frustrating to find that your car insurance premium is on the rise. Not only will this impact your budget, but it may also lead to a situation in which you have to search for a new provider.
There are many reasons for a car insurance premium increase, some of which you have control over and others of which you don’t.
Let’s start by examining a few of the things that you can’t control:
• Repair costs
• Number of uninsured motorists in your state
• Insurance fraud
• Increased number of accidents in your state
While you have no control over these factors, there are some you can focus on in an attempt to keep your rate down:
• Claims. If you have never filed a claim in the past, it works in your favor in regards to your insurance premium. However, if you’ve filed several claims in the recent past, you can expect your rate to increase.
• Traffic violations. Car insurance companies reward people who are safe drivers. Just the same, a traffic violation shows that you may not be driving as safely as you could, thus making you a bigger risk to insure.
• Expired discounts. One of the best ways to save on car insurance is through discounts offered by your insurance company. Unfortunately, these can expire every now and again. Some of the most common discounts include: multi-policy, good driver, automatic payments, and membership in a particular club or organization.
• New home base. If you move from one city to the next, you can expect it to impact your premium. It’s your hopes that your premium decreases, but don’t be completely surprised if the opposite happens.
If you experience a car insurance premium increase, the best thing you can do is contact your provider for clarification. They can provide you a reason for the increase, as well as your options for saving money.