When Can My Auto Insurance Rates Go Up
Revised 20 Mar 2015
902 views |
The following passages briefly outline the most likely causes of the premium fee increase.
1. Driving Records - The Obvious
As expected, your car insurance company obviously uses your driving record as one of the most important variables in determining your premium fee. Any accident and traffic violation in which you are involved will be documented by the DMV; they will stay there for 3 to 5 years depending on the law in your states. If the insurance company checks your driving records on renewal, your premium fee is likely to increase. Insurer can simply consider you careless driver, and they can charge more for the coverage that you purchase. Traffic violation is usually classified into two categories including minor and major. Minor violation may include speeding and failure to obey road signs/traffic lights. Major violations include DUI (Driving Under Influence), drag racing, etc. Some states luckily offer a driving course with which you can avoid premium fee increase if you pass the test. Another way is to purchase minor violation forgiveness from insurers, if possible. Most forgiveness purchases from insurers are only possible for minor violations.
Getting older is also an inevitable reason why you need to pay more. Insurance companies actually offer discounts when you reach 50 years of age or so. The NHTSA (National Highway Traffic Safety Administration) suggests a statistic that indicates older drivers between 64 and 69 years old are the safest. Based on that statistic, the premium will be higher as you become around 70 years old. This does make sense, since older people may have difficulties to see, hear, and react properly while on the road. As physical abilities undergo a decline, your skill in driving is probably not at its best anymore. In other words, insurance companies treat elderly customers the same as teens who are commonly not very skilful, making them prone to accidents. The bottom line, your insurance premium will increase as you reach your 70s.
3. Credit Score
Some car insurance companies still use customers' credit ratings to determine premium fee. It means poor credit ratings usually cause higher insurance rates. The reason is very simple; if you have poor credit rating, it is because you missed mortgage or credit card payments. Based on that conclusion, insurance companies consider you less reliable customer. The insurers see poor credit score as a possibility that you will neglect to pay the insurance premium anytime soon. There isn't any strong enough link between timely insurance bill payment and credit score, but some companies still use this formula anyway. The practice of checking credit score in determining insurance premium is a bit controversial indeed, and some states strongly against this kind of practice. Some insurers do this, but others don't; you need to always ask your agents whether any particular auto insurance company still implements the policy. If it does, the insurance rates will rise as your credit score falls. You can always switch insurers and find one that does not implement such practice.
3. New Address
Moving to a new house can be an exciting experience for you, your family, and your car insurance company as well. When you first signed up with your insurer, you usually provided information about home address. Based on this information, the company could predict how many miles you drive each year and whether your everyday route is safe. If your new address also makes you drive more miles every day, your insurance company will ask for more money. The more time you spend on the road, the more likely you are involved in road accidents. Once again, there is no straightforward explanation on how annual mileage and insurance coverage are strongly related. It is best to consult your insurance agent concerning this issue before you sign up. If driving more miles mean higher rate, you probably can ask for lower rate if you drive fewer miles.
Your home address actually plays big role in your premium rate. If you currently live in a place where criminal activities often occur, this will direct auto insurance to charge you more. Some companies will lower your premium if you equip your car with plenty of safety devices. A good, reliable, reputable, safe auto insurance company/agent is one that provides information about all aforementioned cases along with other insurance-related issues before you even sign up. An independent agent is usually better than the insurer's representative since independent agent works solely for you and this kind of agent will not try to sell bad insurance policies to the person whom he/she works for. Get My Insurance Auto
No related articles were found.
More Articles By suryo
Barack Obama Give North Korea Sanctions For 'THE INTERVIEW
by suryo | in Entertainment and Media | 818 Views
US President Barack Obama announced that he has made to sanction North Korea. This is related to cyber attacks suffered by Sony Pictures Entertainment
Successful Build consumer confidence in Business Online store
by suryo | in Business and Profession | 388 Views
Consumer confidencefor anybusinessis aprimary capital.No exceptionforonline business.If the perpetratoreitheronline orofflinebusinessdoes not havethe confidence oftheconsumer, thebusinessmanwill be difficultto getrepeat customers.Becauseconsumersfeel freeto redo thepurchase transactiononthebusinessyou run.
Free herbal medicine Diet and Weight Loss Product Samples
by suryo | in Health and Nutrition | 775 Views
Acai Berry Affiliate Program - Harvested by Brazilians for hundreds of years as a food staple and for their rejuvenating and detoxifying properties, Acai berries (fruit of Amazonian Acai Palms) have been all over the media, from articles in fitness magazines to features on popular television programs like Today show. If you can send 20 or more sales a day, contact sales for rate increases. The Trial Offer is available in all authorized countries below.
No Gym, No Problem: Five Reasons Why A Gym Membership Is Not Necessary For Fitness Excellence
by suryo | in Health and Nutrition | 476 Views
No gym. No equipment purchase needed. Burn fat and transform your body smarter, faster, and more efficiently with these ultra-effective home workouts. Try it 100% FREE for 30 Days!
Free 500 Gift Cards - Get a $1,000 Gift Card Instead
by suryo | in Money and Finance | 454 Views
There are many sites online advertising how you can get free merchandise and free gift cards. These sites are legitimate and there are plenty of them. It is best to shop around because for the same amount of work, you can get a $1000 gift card just as easily as you can a $500 gift card. Don't sell yourself short. The opportunities are out there.
There are no comments for this article yet.
Add a Comment
You must Login to enter comments.
- Arts, Crafts and Hobbies
- Automotive and Transportation
- Business and Profession
- History and Famous People
- Events and Holidays
- Games and Entertainment
- Health and Nutrition
- Computers and Internet
- Law and Government
- Entertainment and Media
- Money and Finance
- Travel, Places and Culture
- Plants and Animals
- Science and Technology
- Sports and Recreation
- Earnwrite Help