When To Expect Your Auto Insurance Premiums To Rise (And When They Will Fall)
Your car is an asset that requires utmost care. Auto insurance is the major way to care for this asset. However, it can be confusing seeing your auto insurance premiums rise despite the fact that you had no claims and your car is not old. Here are five important factors that should cause you to expect a rise in your insurance premium:
Your Claims History
If you have many accidents you can expect that your premiums will rise as the insurance company sees you as a high risk client. Damages that go beyond the ceiling placed by the coverage will drive your premiums up noticeably.
A Poor Driving Record
A poor driving record means that you are raking up accidents and filing claims as you go. The number of claims you amass directly increases the amount of money you pay in premiums. It is, therefore, important to keep your driving record clean to keep the premiums low and even cause them to fall. Additionally, convictions like drunk driving or driving violations cause your premiums to go up.
Moving into a More Insurance Expensive Area
There are areas where car insurance may be more expensive owing to factors like:
Prevalence of natural disasters like storms, hurricanes, and tornado
Climatic considerations that can cause issues like rust
These circumstances cause insurance companies to be more stringent and charge you higher premiums. While natural occurrences cannot be controlled by car owners, the fact that you have decided to live in an area prone to them means that you take responsibility for that decision and all that it may entail.
How to Reduce Car Insurance Premiums
Let your insurance company know of even the most minor accidents so that if the other driver sues you later on, the company is aware of the incident. Lack of transparency can cause your insurance company to not honor your policy while honesty can give you access to the forgiveness clause.
Take Advantage of Discounts
Remaining a long-term client will earn you discounts, as will having an older car that does not have comprehensive coverage. Such discounts really help decrease the premiums that you have to pay in the long run.
The amount of money you can spend on auto insurance premiums is all dependent on you and your driving habits. Take care of your driving for a healthy insurance premium. Check out a website like http://www.powellinsuranceportsmouthohio.com for more information and assistance.