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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.

Posted 3:55 PM

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