Understanding and Avoiding Car Insurance Rate Increases

For many people, auto insurance is a huge monthly expense. That’s why it can be so upsetting when premiums go up. There are a number of reasons why insurance companies increase their prices. Fortunately, you can learn about the factors which most affect rate hikes from InsuranceHotline.com. Having this valuable information helps you to become aware of rate increases before they happen.

Car Insurance

There are several factors which provide a reliable way to foresee insurance rate increases. A few are common knowledge while some others might take you by surprise. According to Tammy Ezer from InsuranceHotline.com, “There are plenty of reasons a car insurance premium might go up, but a few reasons are the most likely culprits and the most common factors.” These factors have the highest chance of causing increases in insurance premiums.

Traffic Tickets

If you’ve ever had a ticket, you’re probably already aware that it could result in paying more for insurance. Furthermore, there are a lot of different traffic violations which will cause this. How much more you end up paying depends upon the severity of the offense. The offenses for which people most often experience a rate increase include running stop signs and red lights, failing to properly use turn signals, disobeying traffic signals and speeding.

This doesn’t happen with all traffic offenses, as individual companies will often possess their own rules in this regard. However, it is very likely that any moving violation will cause a rate hike. The best way to prevent this from happening is to always obey the signs, signals, speed limits and driving laws.

At-Fault Accidents

Regardless of whether you live in a no-fault province, someone will still be considered at fault. Typically, the driver whose fault the accident was will be hit with an increase in their insurance costs. If both drivers are found to be at fault, both can expect to pay more.

Most often, the price increase becomes active when renewing your insurance and it will continue to haunt you with every insurance provider you have. Luckily, these things don’t cost the same across all providers, so you can still save money if you shop around.

Getting a New Car

Insurance companies rate each car differently, but you may be shocked by you much you could end up paying when you purchase a new car. Sports and luxury cars are generally more expensive to fix and maintain and are therefore costlier to have insured. Of course, when you replace your old clunker with a shiny new model, the difference in payment size can seem more significant.

In order to know what you’re getting into, it’s recommended that you find insurance quotes for your prospective new car to see about how much you can expect to pay every month. Take this opportunity to look around at different provider’s rates, since the car you want may cost less to insure with another company.

Moving and Changing Jobs

Where you live and work has a huge impact on your insurance rates because of where your car spends most of its time. Many people are often surprised to learn that simply moving to a new postal code and having to drive further to work each day can hit them hard in the wallet. While you can’t really prevent these things, it doesn’t mean you’re stuck paying top dollar.

If you’ve suffered higher insurance premiums because of this, it’s a good reason to shop around for a better deal. All insurance providers decide their own prices. Because where you live and the location and driving distance of you job causes rates to vary so widely, if you receive a rate hike for this reason, you’re likely to have good luck getting a lower rate with some good old fashioned bargain hunting.

While not all increases in insurance premiums can be prevented, many can be remedied by searching online or around town for a better deal. Stay safe on the road and realize when you need to stop paying too much for insurance.

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