Seeing your car insurance premiums spike – especially when it happens without warning – can be a rude awakening for many people, and a reminder to always keep a close eye on the changing variables within one’s life. When it comes to figuring out exactly what might have caused (or what might soon cause) your auto insurance rates to race skyward, however, there are usually a few choices that you should be able to quickly rule out or in based on what you know of your own circumstances; a recent accident or ticket, for instance, is often one of the most common suspects, and might be a good place to start. Once these kinds of factors are ruled out, you can even go the extra mile and consider a few additional factors which, though not as obviously connected to your auto insurance, might still have had an effect.
1. Are you driving a new (or different) car? Your car insurance is calculated according to a number of variable and unique factors, one of which happens to be the make, model, age and condition of the car that you drive. Changing this variable – by driving a newer car, for instance, a more valuable one or one believed to be less safe – could result in boosted insurance premiums to account for the added financial risk.
2. Have you changed your address? Just like car models, addresses in certain areas can entail greater risks – at least from the perspective of a given insurance company. Addresses in densely populated regions like urban environments, for example, are usually seen to carry greater risk than those in smaller towns or rural areas. A move from a less heavily populated area into a more heavily populated one could, then, cause auto insurance rates to rise; the insurance company will see the move as an increase in the likelihood of having an accident, making you pay more to cover potential costs.
3. Has another driver been placed on your insurance policy? An addition to an existing auto insurance policy – as happens when a new teen driver is added to a parent’s policy, for instance – will mean that the rates on the policy will increase.