Surprising Factors That Will Increase Car Insurance Costs

LOS ANGELES, July 20, 2020 /PRNewswire-PRWeb/ -- has launched a new blog post that presents some of the most unexpected factors that can affect the price of car insurance.

For more info and free car insurance quotes, visit

There are many cautious drivers who are wondering why their auto insurance premiums went up. Although car insurance premiums are based largely on the risk factors of the policyholders, there are many other factors that can lead to premium increases. Some of them are beyond the policyholders' control.

The most common factors that can lead to premium increases without an obvious reason are the following:

    --  Moving to a new place. Even moving to a different ZIP code just a few
        miles away can cause the premiums to increase. Moving to an area where
        the crime rate is higher or to a neighborhood that has a higher
        population density will likely make the car insurance to be more
        expensive. The rates will also go up for drivers who move to areas with
        higher rate claims.
    --  Bad credit score. 95 percent of auto insurers use credit history in
        their underwriting decisions. A low credit score can affect the
        insurance rates even more than a DUI. In all states, except California,
        Massachusetts, and Hawaii, insurance providers are allowed to factor the
        credit-worthiness when considering premium rates.
    --  People are driving more. More people are driving cars and are driving
        more miles. There are more cars on the road today, and this means there
        are more chances for accidents to happen. If there are more accidents,
        then there are more claims. For this reason, insurers can raise
    --  Distracted drivers. Distracted driving has become more prevalent with
        the rise of smartphone use and internal auto technology. The more
        accidents, the higher the overall costs for car insurance providers.
        These costs are passed on all drivers, even those who avoid distractions
        while driving,
    --  An increasing number of uninsured drivers. Dealing with the uninsured
        claims process can be a massive expense for providers. On average, the
        cost of an uninsured driver's claim is approximately $20,000. This cost
        is passed on to paying policyholders.
    --  Higher speed limits. Some states have increased their speed limits. As a
        result, there are more fatalities and providers have to pay more
        liability claims.
    --  Increasing repair costs. Newer vehicles have more gadgets and
        sophisticated warning devices that cost more to repair. On top of that,
        newer cars equipped with sophisticated devices are more likely to be
        stolen by thefts who want to sell these expensive auto parts on the
        black market.
    --  Rising medical costs. Health care costs are climbing. When insurance
        providers are required to pay out progressively larger medical costs
        following at-fault accidents caused by their policyholders, the whole
        pool of policyholders may have to pay more on their premiums.
    --  Extreme weather. Drivers who live in areas that were affected by extreme
        weather events such as hurricanes, blizzards, floods, may have their
        insurance rates affected. To make up for the payment of an increased
        number of claims, the insurers are forced to raise the premiums.
    --  Insurance fraud. Car insurance companies lose $29 billion per year due
        to insurance fraud. To remain profitable, they pass this cost to all
        drivers, including those who don't lie to their insurers.
    --  Living in a state that has recently legalized recreational marijuana
        use. In the states that legalized marijuana use, insurers noticed an
        increase in collision claim frequency.

For additional info, money-saving tips and free car insurance quotes, visit is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.