If you’re looking to save some money on your auto insurance premiums, you may think the best thing to do is to search around and try to find the cheapest auto insurance company in your area. However, while this may be an important step, it’s definitely not the only one you should be taking. You see, there are plenty of other factors that can affect your auto insurance rates as well, and if you ignore them, you could end up paying more than you need to be paying anyway! That’s why we decided to put together this list of 10 things that can affect your auto insurance rates.
1) Driving Accidents
Car accidents are one of the leading causes of death in the United States, so it’s no surprise that they have a major impact on your auto insurance rates. If you’re at fault for an accident, your rates will almost certainly go up. Even if you’re not at fault, your rates could still increase if the other driver doesn’t have insurance or if there is property damage involved.
2) Multiple Tickets or DUI’s
Racking up multiple speeding tickets or being convicted of a DUI can cause your rates to skyrocket. That’s because insurers see you as a high-risk driver who is more likely to get into an accident. Also, if you have one ticket for reckless driving, the insurance company will assume that you have many other infractions on your record and charge accordingly.
In contrast, drivers with clean records are seen as low-risk individuals and they are charged less.
Luckily, there are ways to minimize the negative effects on your car insurance rates by taking steps such as raising deductibles and installing anti-theft devices in your vehicle.
3) Driving Young or without any License
If you’re a young driver or don’t have a license, your rates will be high. This is because insurers see you as a high-risk driver. To get the best rates, make sure you’re driving with a valid license and have a clean driving record.
4) Moving too frequently
One of the worst things you can do to your auto insurance rates is move too frequently. If you’re constantly on the move, your rates will go up. Even if you’re just moving a few times a year, it’s still going to add up and affect your rates. The best thing you can do is stay put in one place for as long as possible.
5) Too many miles on your vehicle
If you drive too many miles each year, your insurance company may charge you a higher rate. The reason for this is that the more time you spend on the road, the greater the chance of an accident. Even if you are a safe driver, the simple fact is that the more time you spend behind the wheel, the greater your risk of being in an accident.
6) Having Illegal Vehicles in your Car Park
While it might not seem like a big deal to keep an unregistered or uninsured vehicle in your driveway or parking lot, it can actually have a significant impact on your auto insurance rates. If you’re caught with an illegal vehicle, your insurance company could raise your rates or even cancel your policy. Plus, if you’re involved in an accident with an illegal vehicle, you could be held liable for any damages. So, it’s best to play it safe and keep your car parked legally.
7) Giving false information when filing for insurance
When you’re looking for auto insurance, be honest about your driving history, where you live, and how much you drive. If you’re not truthful, your insurer may find out and could cancel your policy or refuse to pay claims. Worse, if you have an accident, you could be denied coverage entirely. So save yourself the hassle and play it safe by being upfront from the start.
8) Driving an older model car
Driving an older model car can be great in a number of ways. It can be more affordable, and sometimes even more reliable than a newer model. However, when it comes to auto insurance rates, driving an older car can actually end up costing you more.
9) Being too old for a certain category
Auto insurance companies consider many factors when setting rates, and one of those is your age. If you’re too old for a certain category, you could see your rates go up. For example, if you’re over 25 and still in the high-risk category, your rates will be higher than someone who is the same age but in the preferred category.
10) Bad Credit History
One of the worst things you can do to your auto insurance rates is have a bad credit history. Insurers will often check your credit score when you apply for coverage, and a low score can lead to higher rates. Plus, if you have a history of late payments or collections, that can also result in higher rates. To avoid paying more for your coverage, be sure to keep your credit in good standing.