05/17/2024
What Makes My Car Insurance Go Up?
Publish Date: March 1, 2021
Car insurance rates can fluctuate based on a lot of factors. Help separate fact from fiction with this info about car insurance rates, and find out how to help lower your rates if they do increase!
If I get a ticket, will my car insurance go up?
Getting ticketed by a law enforcement officer doesn’t necessarily result in a premium increase. It depends on how your insurance company views traffic violations, and they weigh a variety of factors. For example, if you were flagged for a minor incident like failing to yield the right of way or driving with a broken headlight, a rate increase might be avoided. If you were ticketed for a more serious offense, like going 85 mph in a school zone, you may see an increase in your insurance premium.
If you are ticketed for a very serious violation, such as drunk driving, your insurer may consider you to be a higher risk driver and your premium may increase when your policy renews. This is also usually the case if you receive three traffic tickets within three to five years.
Some insurers reward safe drivers with discounts, so obeying traffic laws can really pay off and save you money in the long run!
If I’m involved in an accident, will my car insurance go up?
You don’t necessarily need to worry about an increase in your insurance premium if the accident was not your fault. If you are found to be at fault, you may be considered a riskier driver, which may result in an increase in your premium when you renew your policy.
Even if you don’t wind up filing a claim, you should always report an accident to your insurer. If you don’t report the accident initially but to decide to do so at a later time, your insurance company could deny coverage. And if you don’t report the accident and are sued by other involved parties, you may have to pay for legal defense and any damages out of your own pocket.
Being a good driver is the best way to prevent an accident-related increase in your premium. Safe drivers can even receive discounts on their insurance in some cases, so it’s another reason to be careful on the roads!
Will filing a claim make my car insurance go up?
Like many other factors, it all depends on the circumstances. The Insurance Information Institute states that if you file a claim after an accident or other mishap, it is likely that your premium will increase, especially if you’re at-fault for the incident or if the claim is very expensive. How much will it increase? That all depends on your insurance company, your coverage and your driving record. A claim-related premium increase generally stays on your policy for three to five years. To avoid an increase in your insurance premium, you may want to consider paying to fix minor damage to your car, rather than filing a claim.
If I buy a new car, will my car insurance go up?
Your insurance premium depends on a number of factors, including the cost of the vehicle, how much it would cost to repair it, how safe it is and the likelihood that it would be stolen. Your car insurance might cost less if you have a less expensive, safer vehicle, but it could end up costing you more to insure it because of anti-theft technology developments and road safety issues. It all depends on the vehicle!
It’s always a good idea to get a car insurance quote before you purchase a new or used vehicle, which will allow you to check if your insurance premiums will go up or down. This can be an important deciding factor, especially if you’re figuring it into your monthly budget!
If I move, will my car insurance go up?
Your rate is partially based on your home ZIP code, so moving to a new home could result in an increase or a decrease in your premium. Based on rates of car accidents and theft, different ZIP codes are considered to be riskier than others. Before you move, it might be a good idea to take into account how much the move might impact your car insurance premium.
If I get married, will my car insurance go up?
Interestingly enough, getting married might cause your car insurance to decrease, not increase. From a statistical perspective, married drivers are less likely to be involved in car accidents than single drivers. As such, married drivers are sometimes seen as less of a risk and may have lower premiums. You may also want to speak with your agent about what options you have to find the best rate if your spouse has a less-than-perfect driving record.
When I turn 65, will my car insurance go up?
When you turn 65, you may pay more or less for car insurance, depending on where you live and which insurance company you use. In many cases, as long as you have a good driving record, your insurance premium may end up decreasing when you turn 65.
If you are 65 or older and want to lower your insurance premium, you may want to consider taking a state-approved defensive driving or driver safety course. Some states offer driver training discounts and some insurers will reduce your premium if complete these courses, so check with your local agent to see if you qualify!
If you are about to experience any of these major life changes and have questions about how it may impact your premium, contact your local NatGen agent today. We will help you find the answers you need, and assist you in understanding what you can do to keep them your rates as low as possible. No matter how complicated these changes may seem, we’re here to help!
