There are many things that can affect your auto insurance premium rates. At times it will be very difficult to understand the factor that is mostly affecting your car insurance premium. You need to follow some guidelines while buying or renewing an auto insurance policy.

Here we will discuss how to avoid unnecessary rate increases and anticipate those that are necessary. Although there are many reasons your car insurance premiums may be on the rise, the following are a few common reasons:

  • Accident claims: If you have been involved in accidents or caused accidents, you will have higher auto insurance premiums.
  • Driving record: If you have received a ticket or citation or moving violations tend to mean that you are more likely to cause accidents and hence premiums will go up.
  • Changed location: If you have moved from small town to big city with highly populated area and more traffic then you may face higher premiums.
  • Expensive vehicle: If you have changed your car or bought new expensive car then your premium may go high. Small factors like make, model, class of the car determines your premium.
  • Teenage driver: If you changed your driver or hired a new teenage driver, who are more likely to drive irresponsibly tend to increase your premium cost.
  • Credit score: If you have any default payments and have a bad credit history, your insurer may consider as high-risk customer for late payments. This may result in high premium rates.
  • Driving mileage: The amount of miles that you drive per month or the distance you have to drive to get to work will go into your auto insurance premiums calculation.
  • No auto-theft devices: If don’t have any auto-theft safety devices to protect your car from theft, you may need to pay high premium.

Thus, all the above factors may increase your auto insurance premium costs to the most extent. In order not to increase your premium cost, you need to maintain

  • Proper speed limit
  • Drive safely
  • Not to drive after consuming alcohol
  • Safe driving record

Also, it is advisable to purchase a policy that covers almost every aspect that might incur huge losses to you.