One of the most frustrating things to you is renewing your car insurance to discover that the premium rates have gone up, even though you have not had any changes on your end. It makes you think that maybe you should check in to get a new policy, which is always a great idea when it comes time to renew.
One of the best ways to do this task is to go online to a comparison site and let them do all the hard work for you. They will take some information, match some of their partner sites with your data, and send you some offers. All you do is go through the policies and pick the best one.
But, back to why your car insurance premiums go up every year. It is not necessarily anything you have done wrong, and it is not that the insurance company is trying to gouge you for every dime they can. Let’s take a little deeper look into this topic to better understand why your premium costs go up every year.
- Inflation: It is an aspect of life that none of us like to discuss, but it is a part of life that you cannot avoid for very long because it affects everything, including your insurance premiums. Insurance costs go up when the cost of living goes up and the nation’s inflation goes up.
- Statistics: The area you live in affects the cost of your insurance, which is not something everyone realizes. If you live in an area suddenly flooded with high amounts of crime, especially those pointed towards vehicle damages, the insurance claims will increase. That means that the premiums will go up to cover the increases.
- Drivers: If you add a driver or have a driver on your policy that has had an accident or ticket, your premiums will go up to reflect it. The more likely you are to file a claim with your insurance company, the more premiums you will be asked to pay to cover those costs when the time comes to pay them out to you. If the price goes up to high, check out your options at iSelect to see if you can get a lower premium cost through one of their partner sites.
- Driving Record: If you have any blemishes on your driving record since the last time you paid your premiums, you can almost guarantee that your premiums will go up. By how much will depend upon your violation or accident, so there is no way of judging by how much until you run the numbers through your insurance company platform.
- Credit Score: Your credit score is used for everything, including the amount of car insurance premiums you pay. Over the last few things, times have been a little tough for people, but letting something slide for a month or two that can affect your credit score will turn around and affect other things, which in turn ends up costing you more in the long run so keep working on lowering your credit score.
Other variables can affect your car insurance premiums, such as changes in your discounts and age, but these five points are the biggest ones to pay attention to. If you want more specific information, reach out to your insurance carrier and get some detailed information from them. That way, you will know exactly what they look at and will use to raise or lower your insurance premiums every time they come up for renewal.
If you do not like what they say, search through an online comparison site until you find an option that works best for you at the lowest price possible.