I am just wondering how car insurance rates increase?

Miranda

Detroit MI

Thank you for asking. Your car insurance rate may increase for various reasons. There are a lot of factors that can cause your car insurance rate to increase. Some of these factors are the following:

1. A change in tickets, accidents and/ or claims record

2. A change in marital status

3. A change in additional divers in the policy

4. A change in cars and/ or auto insurance coverages

5. A change in location where the vehicle is kept

6. A change in credit record

7. A change in car safety feature discounts

8. A change in automobile use

These are just some of the factors that can affect car insurance rate increase. You can get unlimited number of free car insurance quotes here and change these factors to determine how these factors affect your rates.

One of the best ways to lower your annual premiums is to have a higher deductible amount.. Like a $1,000, is what I carry personally.

Now, if you are a claim free and safe driver like I am, you could be saving a ton of money each year on your premiums.  People fail to realize that the deductible amount is only paid when they file a claim and their insurance company pays that claim.

I’ve been to a lot of car insurance company and still, I think I am not getting the best deal. What am I doing wrong?

Jeff

Phoenix, AZ

A: First of all, every car insurance company has their own way of calculating your insurance rate. You have to compare quotes for yourself and decide which one is offering the best auto insurance rate for you. If you think you are not getting the best auto insurance rate, take a moment and see if you already did the following.

• Have you been a good driver lately? Having a good driving record can greatly reduce your car insurance premium. Most car insurance companies rewards drivers who haven’t been into an accident or driving offense since they think you are responsible and you are less likely to ask for claims.
• Do you have a good credit standing? Nowadays, credit score plays a big role in calculating ones insurance rate. Car insurance companies have done a research and the results shows that people with bad credit standings are more likely aiming for insurance claims. As a result, they rate them as risk applicants and give them a higher quote.
• Is your car safe? You can get a low insurance rate if you can prove to your car insurance company that your car is safe or secure from being stolen or vandalized or the driver in it is safe in case of an accident.

Achieving the best auto insurance rate is everybody’s dream and it’s not hard for you to obtain it if you do those simple tasks.