Obtaining insurance coverage for your vehicle or motorcycle
is required by law in the state of California. Ignoring the factors that
determine your insurance policy costs can affect your wallet. So pay attention
and you might save a buck or two. Here are the top five things you didn’t know
can increase your auto insurance rates, and what you can do to save money.
The Type of Vehicle
You Drive
The type of car you drive will determine how expensive your
coverage will be. For instance, if you drive a car that is 10 years old, you
will most likely not need a very expensive policy because the car is not worth
as much as a new one. However, if you buy a brand new car, you’ll need a more
expensive policy that will cover more damages.
The Type of Insurance
Coverage
The type of coverage your car requires can also affect your
pockets. If you are leasing or financing, for example, some dealerships require
your insurance policy to protect their investment. Some will ask that the
deductible on coverage be $500 instead of the $1000 that you used to have with
your older car.
How You’re Using Your
Vehicle
What you use your vehicle for is also a factor determined by
insurance companies. If you use your car for commercial services, like driving
for Uber, your premium might go up. While it may seem like a good idea not to
disclose this information, you should always let your agent know. In the case
of an accident, you must disclose this information or it can result in a denied
claim. You should also let your agent know how much and how far you drive.
Your Claims History
Your claims history and the amount of claims you’ve filed
will also raise the rates on your insurance policy. If you have made 3 or more
claims this year you should expect your rates to be higher. At-fault claims
will also result in higher rates.
Your Driving Record
But nothing will knock those rates up the roof like having a
bad driving record. This tells the auto insurance company that odds of you
filing a claim is a lot higher. A bad
record is a red flag for insurance companies.
While all of these factors will affect your insurance rates,
insurance companies understand that accidents are unavoidable. There are many
things that determine how much your insurance rate will be, but knowing what some
of these are can help you lower your rate.