It has happened to many of us that we got a surprise when we review the collection of our auto insurance and find a price increase without prior notice. The first thing you ask yourself is, why did the price of my car insurance increase?
This can be for various reasons why the cost of your car insurance went up.
Changes in the insurance policy
Adding or removing vehicles from your insurance
Removing vehicles from your policy can also increase the price of your auto insurance. Rebuilt Auto insurance companies, in most cases, offer a multi-car discount. It may be that having two or more cars on your car insurance policy is cheaper than having one.
Change of address
Auto insurance prices also depend on the insured’s address, so if you moved house and notified your auto insurance company about this change and the new address is in an area with a high crime rate higher than your previous address, the insurance company will make a price adjustment.
Add drivers to the policy
If you add another driver to your policy, its price may also rise, more so if this person has traffic tickets or accidents on their driving record. Even the age of the new driver can increase the price of your insurance.
Increase the coverage in your insurance policy
Although increasing the coverage of your car policy increases the price, it is always recommended. In case of an accident, you will see that you will save a lot since the company will be in charge of paying, if not in full, most of the expenses generated by the incident.
- Price increase after a car accident. An accident or traffic ticket, one point or more on your record, can increase the price of your car insurance. One of the most important factors that are taken into account for the price of insurance, how clean the record of the owner or drivers within the policy is.
- If the insured person has accidents or traffic tickets, this person is considered at risk and the cost of the insurance will increase. Having fines or accidents will cause the price of your car insurance not to drop over time.
- Insecurity in the area where you live. If multiple car thefts or vandalism have been reported in your area, your insurance company may decide to raise prices due to this change.
But not everything is bad news for your pocket, despite the fact that the price of your insurance has increased, there are a couple of things you can do to lower the price again.
1. Take a driving course to lower the price of your insurance
Some companies offer courses in order to verify that even if you made a mistake and caused an accident or were fined, your driving skills are good. Having one of these courses on your record will earn you a discount on your car insurance.
2. Drive correctly
Even if your car insurance prices have already risen due to an incident, you can avoid having your insurance prices rise again by driving cautiously. It is always best to follow all traffic rules and drive carefully.