Avoid Auto Insurance Rate Increases and Causes Auto Insurance Rates To Increase For Your Information

Avoid Auto Insurance Rate Increases and Causes Auto Insurance Rates To Increase

Avoid Auto Insurance Rate Increases and Causes Auto Insurance Rates To Increase. There are several ways to avoid auto insurance rate increases, and most of them have to do with a lack of proactive action on the part of the vehicle owner. Here is a list of the main reasons why car owners fail to capitalize on lower insurance quotes:

Traffic Violations:

This is one of the main reasons that auto insurance can suffer from rate increases without the awareness of the vehicle owner. Starting at a 3 percent increase for simple violations, infractions such as being booked for reckless driving can end up costing a policy holder more than 20 percent in rate increases on their previous policies. Safe driving is one of the best ways to keep your auto insurance premiums down, apart from being a sensible practice on its own.

Shopping for New Car Rates:

People often find that when they buy a new car, they're loaded with ridiculously high insurance premiums. You can avoid this by getting insurance quotes on all potential vehicles that you're considering purchasing. Some of them will have different insurance ratings because of factors like built-in safety features, etc. For example, a car with an automatic braking system (ABS) with brake assist will probably attract a lower premium than a car without, because of the smaller likelihood of the car going out of control and crashing on a wet road, for example. Similarly, there are several other factors that go into arriving at a final insurance rate for a particular vehicle, so do the research so you don't get left in the lurch.

Periodic Insurance Shopping:

When the time comes to renew your insurance, don't just renew with your existing provider. Rather, shop around online and look for reputed insurers with high service ratings who will be likely to give you better deals on your renewal. Companies constantly strive to attract customers away from their competitors so they will definitely have a promotional that they can give you to help you save money and bring you over to their side, so to speak. Use the market competition to your advantage and get multiple quotes before making your decision.

Policy Review at Renewal Time:

Even if you're convinced that you're already getting the best rates from the best possible insurance provider, be sure to review your policy for missing or unnecessary elements. For example, traffic tickets that may be out of the statute of limits, or discounts that may not have been applied. You might be able to avoid rate increases in auto insurance just by taking this simple action.

Multi-policy Discounts:

A lot of policy-holders may not realize that they get additional discounts for having several policies with the same company. For example, if your housing insurance is underwritten by the same company as your auto insurance, then you're probably eligible for discounted rates on both. Don't ignore this as an option to help you save money.

Hiding Information:

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This is the worst thing to do: not telling your insurer about a new driver handling the car or about traffic violations that you may have. Insurers are authorized to back-charge you for any bit of missed information when it comes to calculating your future renewals or at the time of paying out on a policy, so be sure that you give them all the information that is relevant to the policy.

These are just a few tips to avoid rate increases on your auto insurance. Remember, don't assume that the rate you're getting is the best deal out there - there's always another way to keep your rates down and get whatever savings you deserve.

What causes your auto insurance rates to increase? Wouldn't it be nice if they never increased? I think most of us would be very satisfied if rates only went up every other year. But, of course, typically, that does not happen as most auto insurance carriers raise premiums just about every year. Sometimes, the change in premium is negligible. Other times, it's the dreaded double-figure jump.

Of course it's too simple and easy to blame premium increases to "inflation," but in fairness, that is one of the major reasons. There are many components that determine what rate an insurer will charge. But when the cost of the repair of a vehicle keeps increasing every year, naturally, that cost is going to be passed onto the consumer.

The "repair" portion of the equation covers many parts of the process. For example, the average cost of physical damage to your own car increases over time since every 3-9 years you probably buy a new vehicle. And certainly, over time, the value of these vehicles is increasing, along with the hourly charge to fix and service them.

The cost of litigation tends to increase over time, which affects your rate. The cost of legal fees, court costs, attorney fees and other related expenses has been rising every decade and that puts a strain on your car insurance rates. The hourly costs of court facilities and other related items is just another factor that must be considered.

Perhaps the quickest way to have your auto insurance premium go up is to have an at-fault accident. Of course, this is not something you do on purpose, but in most cases, your rate will increase. A typical increase may be 10%-20% on the car or driver involved in the accident. If a youthful driver is involved, the increase will be more substantial.

Multiple at-fault accidents could result in even larger increases, especially if they occur within a few years of each other. Usually, the increase on the second at-fault incident is much more than the first one. If the accident is not your fault, you should e able to avoid rate increases. Also, many companies will not increase the rate for an accident if you have driven accident or incident-free with them for a specific period of time.

Moving violations can also potentially force your vehicle insurance premium up. Although a single violation may have a negligible or no affect, more than one ticket can be a problem, especially if they are all within three years. Major moving violations such as DUI, reckless operation of a vehicle, speeding in a school zone and hit and run, will likely cause a substantial increase in the rate.

At-fault accidents and moving violations can also result in the loss of discounts (such as a "good-driver" discount). So in addition to a rate increase, you could lose a discount which doubles the impact of the premium change. Driving slower and more cautiously will dramatically reduce your chances of getting the "double whammy."

Although auto insurance rates are likely to increase, obtaining new quotes online, or reviewing available discounts with a broker may bring you some relief. Also, getting rid of unneeded riders may ease some of the pain as well.

Ed Harris is the premier resource for finding the cheapest car insurance in Virginia. His website offers free Va car insurance quotes here to customers.

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