5 Hidden Factors That Can Raise Your Auto Insurance Premiums

When it comes to car insurance, most people know that things like filing a claim or getting a speeding ticket can affect your rates. What about less obvious reasons?

Sometimes even careful drivers can face increased rates caused by unexpected factors. Here are some sneaky factors that can increase your auto insurance premiums, and what to do about them.

1. Drop in credit rating

Your credit score not only affects the interest rate you pay on your loan; insurance companies in most states use it too. A drop in your credit score may indicate that you are more likely to file a claim, which could result in higher insurance premiums. If your credit score has deteriorated, it may be worth checking your policy to see if your rates have increased.

Monitor your credit score to keep your insurance rates low. Avoid late payments and pay off your credit card balance every month.

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2. Gaps in your insurance

You might think that gaps in your insurance aren’t a big deal, especially if you don’t drive a car. However, insurers may view gaps as risky behavior, and this could cost you money. Even if you don’t own or drive a car, consider maintaining a no-car policy to avoid higher rates in the future.

3. Another postal code.

Real estate is about location, location, location, but it’s also important for auto insurance. Moving to a new area can have a huge impact on your rates, as insurers consider statistics such as crime rates and the average number of accidents and natural disasters when considering rates. Moving to a state that has no-fault insurance laws that don’t assign blame for an accident can also cause your rates to skyrocket.

Before you move, think about insurance costs in your new area. This will help you decide on a suitable place, or at least prepare for a jump in rates. You can also shop around for insurance rates to lock in lower premiums.

4. Estimated change in mileage

The RTO (return to office) mandate at your job may cost more than you think. How much you drive also affects your insurance rates. If you’re returning to the office after years of working from home or have just started traveling more frequently, your insurer may increase your premium to cover the additional risk.

Be sure to keep your insurance company informed about how much you drive and shop around if rates seem high. If you’ve been driving less lately, let your insurer know! You may see a slight reduction in your insurance premiums.

Ready to shop around? Compare your options and find the best car insurance rates.

5. Changes in your marital status

Who knew that a ring on your finger could affect your car insurance rates? Your marital status can affect your auto insurance premiums. Insurers tend to view married couples as less risky drivers, so if you’re recently divorced or separated, you could see your rates jump.

On the other hand, getting married may result in lower premiums, especially if you and your spouse decide to combine your policies. Insurance companies typically offer discounts for households with multiple policies or multiple cars, which can reduce costs.

There is more to your auto insurance premiums than you think. Knowing these hidden triggers can help you avoid unexpected rate hikes. And remember, the best way to lower your insurance premiums is to shop around and compare rates regularly.