Lesser-Known Factors That Will Increase The Car Insurance Costs

LOS ANGELES, July 22, 2020 /PRNewswire-PRWeb/ -- Compare-autoinsurance.org has launched a new blog post that presents some unexpected factors that affect the costs of car insurance and what drivers can do to pay less on their premiums.

For more info and free car insurance quotes, visit https://compare-autoinsurance.org/why-did-the-price-of-car-insurance-went-up-and-what-drivers-can-do-to-take-control/

It can be frustrating for drivers who have no claims to get a car insurance renewal and see the price go up for no apparent reason. There are many factors that can make the price of car insurance increase. Some factors are related to the things that revolve entirely around the policyholders' situation, the elements within their control. Other factors are beyond the policyholder's control.

Some of the most common factors that can lead to an increase in insurance are the following:

    --  Claims history and driving record.
    --  History of convictions or driving violations.
    --  Change of ZIP code.
    --  New drivers added to the policy.
    --  Cancelation of home policy, or other policy causing the loss of the
        multi-policy discount.
    --  The removal of a vehicle from the policy, causing the loss of the
        multi-car policy discount.
    --  Change of employment, causing the loss of a group or professional
        discount.
    --  Certain medical conditions.
    --  Mistakes made by insurance companies.
    --  Changes to the payment plan fees or structure on the insurance plan.

Factors that raise the premiums and are beyond the driver's control are the following:

    --  Liability claims paid out by the insurance company. If the previous
        year(s) showed a steady increase in the amount the insurers have been
        paying on claims, then they can make some adjustments.
    --  Collision, vandalism, or increased claims in the area. Sometimes due to
        changes in traffic patterns, weather patterns, or if areas become more
        congested over time, or a variety of other factors, an area may start to
        see increased claims. In these cases, the insurance providers will
        adjust their rates.
    --  A rise in car theft rates in the area. Car thefts impact both new and
        old cars and every time the annual reports of top stolen vehicles come
        out; insurance companies are sure to take note. Drivers who own models
        of cars that are likely to be stolen should consider adding anti-theft
        devices or vehicle engraving and get a discount to offset the increases.
    --  Uninsured drivers. The nationwide rate for drivers without insurance
        increased from 12.3 percent in 2010 to 13 percent in 2015. Insurance
        providers pay billions of dollars each year on the claims made on
        uninsured drivers. To offset these costs, insurance companies will raise
        the premiums to all policyholders.
    --  Increased repair costs. Newer cars have sophisticated devices and
        gadgets that are expensive to repair or to replace. Also, some
        policyholders own older vehicles that have parts that are more difficult
        to be found on the market.
    --  Credit scoring or underwriting changes. Sometimes, new factors are
        introduced into the calculations of insurance rates. In some cases, the
        files are not updated to include all the discounts and changes since the
        last renewal, and this can lead to a rise in premiums. One example is
        credit scoring. Most insurance companies use the credit score to
        determine insurance rates. A bad score will lead to higher insurance
        costs.
    --  General underwriting rate increase. If an insurance company experiences
        overall losses that exceed their expectations, or if they have not
        reviewed their policyholders' rates for several years, then they will
        increase the rates to remain profitable.

To save money on insurance, policyholders should get the help of their insurance agents or brokers. To check from where the increase is coming for, policyholders can ask their agent to quote another car in place of your own, if they think the vehicle is the reason for the increase. If the policyholders think it's about the area where they live, their agents can simply get a quote with a changed ZIP code. Agents can also help by checking other insurance companies for better deals.

For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/

Compare-autoinsurance.org 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.

SOURCE Compare-Autoinsurance.org