Factors that increase the price of auto insurance
Six factors that increase the price of auto insurance. 2022 begins and one of the most recurring resolutions of the year is to “pay less for auto insurance in the next twelve months.” To achieve this, it is essential to know the factors that influence the increase in the monthly premium.
Recently, we explained that having poor credit is one of the factors that most influence the increase in the price of insurance, but it is not the only one. Another very important one is the history of insurance claims. If you are a client who, from time to time, turns to your insurer with a claim, your policy will increase. It will be interpreted as an expensive customer. The same is true if your driving record is not quite good. For example, if you are fined for driving under the influence of alcohol, your premium, and even your policy deductibles will most likely increase.
There are factors that are more difficult to remedy such as living in a zip code that the insurer considers high risk. Companies use different parameters to estimate the risk of an area, including the number of accidents that occur, thefts, acts of vandalism, and even the health status of residents.
Buying a more modern and expensive car can also influence the increase in the price of the policy. Of course, being new, the vehicle will be safer, but modern cars have more high-tech components, which are very expensive to repair.
If your child starts driving and is included in the policy, the premium will go up. A normal reaction, being an inexperienced driver will be perceived as an increased risk factor.
In short, there you have several of the elements that can influence, in a general way, the rise in the price of your auto policy. Six factors that increase the price of auto insurance.
There are also several formulas you can follow to help pay less for your insurance. It is best to call Univista Insurance and an advisor will analyze your particular case and help you obtain better coverage for much less.