What factors can increase your insurance rates?

Factors that can increase your insurance rates include negative information like traffic violations being added to your driving record, driving more, increasing your insurance coverage and lowering your deductibles. Moving to a state with higher minimum insurance coverage requirements will also cause your rates to go up. Even moving to an area with higher crime rates can increase your premiums.

Factors That Can Increase Your Car Insurance Rates

• Negative information added to your driving history: Insurance companies will raise your insurance rates after at-fault accidents or traffic violations like speeding tickets or red light infractions go on your driving record because you will be seen as a higher risk.

• Driving more: If your annual mileage goes up, your car insurance rates are likely to follow. Insurance companies typically consider someone who drives 15,000 miles or more to be a high-mileage driver.
• Increasing your insurance coverage: Adding another type of insurance to your policy or increasing your coverage limits can raise your insurance rates.

• Increase in crime and accidents in your ZIP code: Living in or moving to an area with high crime rates, heavy traffic, or frequent natural disasters can make your insurance rates go up.

• Adding drivers to your policy: Adding drivers can cause an increase in your insurance rates depending on their driving history, credit, age, and other aspects. For instance, adding a driver under the age of 25 can greatly increase your premiums, because drivers in this age group lack experience and get into more accidents compared to middle-aged drivers.

• Frequent claims: Filing multiple insurance claims within three years can increase your auto insurance rates.

• A drop in credit score: The lower your credit score, the higher your car insurance rates will be in states that allow companies to factor in credit history when setting premium prices.

• Purchasing an expensive vehicle: Getting a sports car, a luxury car, or a vehicle with a high theft rate will raise your premium, since these vehicles are more expensive to insure.

• Losing discounts: When you no longer qualify for discounts, you’ll have to pay a higher insurance premium. For instance, you can lose discounts when you get into an accident, get a moving violation, or take a vehicle off your policy.

• Moving to a state that requires more coverage: Some states require more than just liability insurance and have higher coverage limits than other states. For example, if you move to a state that requires additional coverage, like uninsured motorist coverage, the cost of your insurance will go up.

• Getting a divorce: Insurance premiums can increase after a divorce. You can lose discounts for being married and having multiple vehicles if you get a separate insurance policy. Single drivers also typically have higher insurance rates than married drivers, because married individuals are less likely to get into accidents and file claims.

• Becoming a senior: Insurance rates typically start to go up after you turn 65 years old because senior drivers are more likely to get into car accidents due to failing hearing, vision problems, and other health issues.

• Economic changes: Unfortunately, some factors outside of your control can contribute to rate increases. For example, rising inflation and an increase in the cost of bodily injury and property damage claims can cause your rate to go up.

Fortunately, there are a variety of ways to reduce your auto insurance rates. They include comparing quotes from multiple companies, searching for car insurance discounts, and reducing your coverage and mileage where possible.

For more information, check out WalletHub’s guide on ways to lower your car insurance.