It seems like the cost of life is always on the rise and car insurance is no exception. If you’ve seen your car insurance premiums go up, it could be because of some obvious reasons, like you’ve had an accident. But there are some less obvious reasons that may be out of your control and are related to the insurance industry as a whole. Either way, read on to learn about what is and what is not in your control and how to lower the cost of your auto insurance.
Pricing Factors Within Your Control
The most common reason you will see a rise in auto insurance rates is because you’ve had to use it. If you ‘ve been involved in an accident and you were at fault, you will likely see a rise in your rates. This is because your insurance company rewards you for years without an at-fault accident and penalizes you when you have to make a claim for an accident that’s your fault. In addition, if you’ve had a ticket or other violation, you could also see a rise in rates.
Other factors that you have control over include:
- The type of car you insure
- Your credit history (in some states)
- Where you live
Pricing Factors Outside of Your Control
While you can control some of the factors that contribute to your car insurance rates, there are some factors that affect just about everyone. It is a fact that there are more drivers than ever on the roads, and this naturally means there are more accidents than ever. And, the more money your insurance company has to pay out in accident claims, the higher everyone’s rates will rise. Some of the factors contributing to this are:
- An increase in the number of distracted driving accidents
- Low gas prices leading to more people on the road
- An increase in texting while driving incidents
How to Save Money on Car Insurance
While you can’t control everything that contributes to your auto insurance rates, you can control some things. If you’ve seen a rise in your premiums, consider the following:
- Make sure you are taking all applicable discounts
- Increase your deductibles to lower your premiums
- Keep a clean driving record
One of the best ways to keep your insurance rates from skyrocketing is to shop around to ensure you are paying the lowest rate. Most car insurance policies these days have 6-month terms, making it easy to take a few minutes to obtain quotes from other carriers.
InsuranceWins can help. Just use our simple form and you will receive quotes from the top insurance companies. If your rates are on the rise, why not shop around and potentially find some savings.
