I have not had any accidents or violations, So why do my auto insurance premiums continue to increase?
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Asked August 23, 2010
It is well-known that your auto insurance rates may go up after you've gotten a ticket or been involved in an accident. What many people do not realize is that there are other factors that may cause your insurance to go up as well, such as where you live, the type or value of your car, or your credit score. Car insurance companies look at over a dozen factors in determining the insurance premiums you pay, and make adjustments according to changes in statistics and in your personal records.
If you move into a neighborhood with a higher crime rate, or the one you live in degenerates, the risk of insuring your vehicle increases. Similarly, if you move out of a home with a private garage and have to park on the street, the risk goes up. Both of these factors together could amount to steadily increasing rates.
If your credit score suffers a large drop, your premiums may increase the next time your policy is evaluated. Just as a private garage is considered a sign of reduced risk to your property, keeping your credit score is regarded as evidence of reduced risk financially.
The car you drive has a large impact on your insurance rates. If you upgrade your vehicle every couple of years, it could be that your increased rates are proportionate with the value of your vehicle. Similarly, adding other vehicles to your policy or increasing the amount of coverage would cause an increase.
Finally, you can watch your insurance bills carefully, and changes will be announced to you during the course of billing. If you still experience insurance premium increases that you can't explain, contact your insurance company and ask them to explain the situation and what you can do to correct it.
Answered August 23, 2010 by Anonymous