Car accidents and traffic violations are common explanations for increased insurance rates, but there are other factors that can cause car insurance premiums to rise. Credit-based insurance scores, rare discounts, and age are all factors that can affect rates. In addition, broader factors such as revised insurance laws, the likelihood of claims in certain areas, and vehicle repair costs can also influence rates. Inflation, supply chain problems, and rising used car values are all contributing to a dramatic increase in car insurance rates across the country.
Violations on your motor vehicle report, such as DUIs or speeding tickets, can indicate to your insurance company that you are more likely to have an accident than a driver without violations. Accident forgiveness endorsements offered by some insurance companies can help offset an increase in premium. The cost of repairing a car has increased at the same rate as the overall CPI, which is not surprising since repairing a car requires mostly labor. Talking to your insurance agent is always better than interacting with an automated website, as they can help you understand how you can lower your rate and why you should or shouldn't change your policies.
Lowering your coverage to save money is not recommended by insurance professionals. When a customer suffers an accident, your insurance company will use those funds to help cover the costs of things like vehicle repairs or rent reimbursements. Look for more affordable car insurance and find discounts you didn't take advantage of the previous year. Understanding the factors that influence insurance rates and what you can do to keep them low can help make it less frustrating when it happens.
