New vehicles are expensive: The average cost of new cars has been soaring, thanks to advanced safety features and new technology. Expensive cars tend to be costly to repair. This is why insurance companies hike the premium rates for newer cars. As long as the prices of cars rise, their insurance rates will rise as well.
Credit score changes: Your credit score is one of the factors linked to your insurance rate. If your credit score drops, then your auto insurance cost can increase. It doesn’t even need to be a significant change in your score to have an impact. This happened in most states, so keep checking your credit score and correct any errors it may have.
Violations and tickets: If you get tickets or cited for traffic violations, then the insurance company may decide that you’re an unsafe or distracted driver. This could mean that the likelihood of you filing a claim increases. This could cost the insurance company thousands. So, to offset that increased risk, they hike your rate.
Age: If a teenager is listed on your policy, your rate is going to increase because someone with minimal experience is likely to cause an accident. If you’re over 70, then your rate will increase too. Insurance companies love drivers around the age of 50.
Lapsed insurance: If for some reason, you fail to renew your insurance policy in time, it’s going to be a big problem. The insurance company will treat it as a red flag and hike your premium instantly. Be vigilant, and never let your insurance lapse.
Zip Code: If you move to an area where the crime rates are higher, or the car accident or theft rates are higher, then you can expect your insurance rates to rise. Conversely, if you move away from a big city to a place with a low crime and accident rate, your insurance rate will drop. It depends on the odds of you being in an accident or having your car stolen.
Accidents: If you’ve recently been involved in an accident, your insurance rate will rise even if you weren’t at fault. You’ll be considered to be at risk for more accidents which will increase your insurance rate.