Saturday, October 17, 2015, AM | Leave Comment
You may feel like auto insurance rates are chosen randomly, but that is not the case. Auto insurance rates are based on a variety of risk factors including your car, your driving history, what state you live in, and so on.
Basically, the riskier the auto insurance company deems you to be, the more expensive your premium is.
Read on to learn what things may cause your auto insurance premium to go up and how to avoid them.
When you file an accident claim or your insurance provider discovers you had an accident, you will be given a re-rate. A re-rate is your new rate based on your most recent claims. This re-rate will most likely be higher than your previous rate.
Even if the accident was not caused by you, your insurance premiums may still go up. That is because your insurance provider will consider you more likely to get in an accident than other drivers who have not been in an accidents. The best way to keep your premiums low is to avoid accidents for your personal safety and avoid increased insurance premiums.
No Insurance or Lapsed Coverage
If you own a car, you are required to have car insurance. However, many people decide they cannot afford insurance or go without insurance for a time. Not only will this impact your insurance premium when you do decide to purchase insurance, but it is dangerous and can result in severe legal penalties if you are found driving without insurance.
When insurance providers see you do not have auto insurance or have had a lapse in auto insurance, you are considered “high-risk” and will pay significantly higher premiums than if you had continuous auto coverage. If you own a car, make sure you always pay insurance to avoid high premiums.
Depending on the type of tickets you have incurred, you ticket history can make you look much more likely to get in an accident to an auto insurance company. A DUI has a much stronger negative effect than driving with a broken headlight.
Obey traffic laws and drive safely to avoid tickets. This will help keep your premiums low. Drivers with tickets that may affect their insurance premiums are advised not to admit guilt. This allows them to contest the ticket later and potentially clear it from their driving record.
Talk to a Lawyer
High insurance premiums are hard to bear, but if you need help, click here to seek an attorney for legal advice. They can help you find the best way to clean your driving record and help reduce your premiums.
Avoid sky-high auto insurance rates by following the law. Every time you get into a car, you risk raising your insurance premiums due to bad driving habits, illegal insurance status, and otherwise failing to follow the law.Facebook.com/doable.finance