5 Things That Can Raise Your Auto Insurance Rates

Insurance Blog

You probably know by now that getting into a car accident or speeding can raise your auto insurance rates. Unfortunately, those are not the only things that can raise your monthly premiums. It is very important to know what can potentially raise your car insurance premiums in the future. Here are five things that can raise your auto insurance rates.

Poor Credit Rating

A poor credit rating does not just make it a lot more difficult to get approved for loans; it can also raise your car insurance rates. An insurance company may think that since you are irresponsible with your finances, you may also be irresponsible on the road. According to a report by InsuranceQuotes.com, drivers with bad credit pay 91 percent more than people with great credit scores. 

Moving to a Bad Neighborhood

If your insurance company finds out that you moved to an area with a high crime rate, your car insurance premiums may go up. They may think that your vehicle is more likely to get vandalized or stolen in a bad neighborhood.

Driving More Miles

If you recently started driving more miles, you could also see an increase in your auto insurance premiums. For example, if you got a new job that is an hour away from your home, your insurance company may see you as a greater risk. They might think that the additional miles you drive will increase your risk of getting into an accident.

Buying a Sports Car

A sports car might impress your friends, but it could raise your auto insurance rates. A sports car has more power than a regular car, so you are more likely to get into a car accident. Before you think about purchasing a sports car, determine if you can afford the higher auto insurance rates or not.

Cancelling Your Auto Insurance

If you are thinking about cancelling your auto insurance for now and using public transportation to save money, you may pay a bigger price later. If you go without auto insurance for a while, you will be charged higher insurance premiums in the future.

As you can see, there are several things that can raise your car insurance rates. If you recently noticed a spike in your auto insurance premiums, do not be afraid to talk to your insurance agent about it. He may be able to help you lower your car insurance rates.


8 November 2014