Most people want to save money on things like auto insurance. They don't like the idea of overpaying, and why should they? There is no reason to pay more for insurance if you don't have to. Educating yourself on the reasons why your insurance might change in price can help you prevent having unnecessary changes in your insurance costs. Here are some reasons that your auto insurance has increased.
1. You Are Driving More
The amount that you drive will affect how much you pay in auto insurance. It is simple statistics. The more you are in a car the more likely you are to get in a car accident. Thus, if you can carpool more, use public transportation, or walk to where you need to go, you can save a good deal of money.
2. You Bought A Nicer Car
Another reason that you would be charged more in your insurance is that you bought a nicer car. The more money you spend on your car, the more you will spend on insurance. Your insurance is calculated based on how much it will cost the insurance company to make repairs. For example, foreign-made sports car or luxury car will cost a lot more to insure than an American-made practical car that is easy to replace and get parts for. So when you choose the type of car of you want to buy make sure you choose a car that is not only in your budget for the payments, but it is in your budget for insurance premiums.
3. You Got Into An Accident Or Were Issued A Traffic Ticket
One of the biggest things to affect your auto insurance is your driving record. Any time you are in a car wreck that was your fault, or if you were issued a traffic ticket, you will have a spike in your auto insurance. This increase will stay on your premiums until the citation or accident is no longer on the record, usually a couple of years. For this reason, safe driving equals money saved.
4. You Have A Teenager On Your Policy
Lastly, if you have a teenager now on your policy you should expect to see an increase in how much you pay. Teenagers are seen as a higher risk than responsible adults, so until they are on their own policy or married and on their own, you will pay more.
By understanding these things you can know when your auto insurance will increase.