Understanding Why Your Auto Insurance Costs Increased Even When You Didn’t File a Claim


Section 1: Factors that may affect your auto insurance rates

Following the previous section, we’ll explore the reasons why your auto insurance rates are increasing.

1. What types of driving do you do?

Do you drive a lot in a specific area? For example, are you the only person with a particular car, or do you have several others around?

Not everyone who owns multiple cars has a domineering amount of driving. Some people drive around town on weekdays when there’s no traffic, and then ride to work on weekends.

It’s even possible that you’re one of these rare few people who just loves driving. However, if you live in a state like Connecticut, where driving often is not encouraged due to low gas prices, this factor may play a large role in your auto insurance rates.

Car Insurance for New Drivers

You can save up to half of your car insurance premium by just paying your bill at the end of every month instead of waiting for your premium to go up each month.

Do you think you are paying too much for car insurance? We have some tips to make sure that you don’t pay more than you have to. Start by keeping your car, battery and maintenance up-to-date to reduce the risk of car accidents.

Next, remember to always stay vigilant and pay attention when driving. Accidents are the #1 cause of claims, and the lower your accident rate is, the lower your insurance premiums will be.

Avoiding Accidents or Tickets

Avoiding tickets and accidents are two great ways to keep your premiums down. But before you know whether these strategies are effective, be aware that some defensive driving strategies may actually lead to higher premiums. A short answer: no, they won’t.

Whether these strategies will help you avoid an accident depends on how many similar drivers are in your vicinity, how hard you drive, and your general driving style. These factors can’t be altered, but drivers can change their driving habits for the better.

Learn to Smoothly Accelerate and Stop Your Car

In a natural-speed car accident, the force of the collision causes all four tires to lock up, and the driver loses control, which makes the vehicle veer off to the left or the right.

Getting the Best Rate for Your Vehicle

Car insurance rates vary for all kinds of reasons and knowing them can keep the monthly insurance bill under control. Here are a few reasons why your auto insurance is increasing even though you haven’t yet filed a claim:

Driving less frequently, or not at all, is increasing your risk. Car insurance rates increase when the risk of vehicle theft increases and your overall risk of driving increases. People with little risk are more likely to drive no or few miles than those with a higher risk. Insurers charge more for lower risk drivers.

Your vehicles are more likely to break down. Having older, less reliable cars means you’re more likely to experience vehicle failures that incur high repair bills. Insurance rates increase with higher repair costs.

Understanding Your Coverage Requirements

More and more, people are realizing that insurance is not just about the “big ticket” coverage. For example, your driver’s license or license plate may not have to be purchased. You’re only required to have liability insurance if your car is equipped with some type of optional driver assist.

Still, you want liability insurance, and you want the highest level of coverage possible. Liability coverage is necessary for making a claim if an incident occurs. In order to get it, you have to provide the most up-to-date information about yourself.

Think you’ve met all the requirements for buying liability coverage, but your rates keep climbing anyway? It may be time to review your coverage to make sure it is sufficient.

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