5 Things That Spike Auto Insurance Rates
Insurance experts agree that the best way to ensure that you get the best rates on your car insurance is to shop around and to compare quotes from multiple sources. To save time and trouble during this process, many in the market for a new Greensboro auto insurance policy will utilize the services of an insurance broker having access to multiple companies and insurance products.
Sometimes you may see a spike in the premium rates of your Greensboro auto insurance for one reason or another. There are any number of reasons why you may experience a jump in rates and, if this should happen, it would be wise to go back to the insurance market to see if you can save some dollars by changing insurers.
How Car Insurance Companies Operate
Car insurance companies are in business to make a profit and the way they do this is by insuring drivers who pay their premiums but don’t submit claims. Insurers lose money when they write policies for drivers who have accidents or other losses and submit claims, so they’re very careful about who they insure and how much they charge for premium payments.
They use lots of data and underwriting tools to try to calculate who are the best risks. Sometimes factors change and it causes them to reconsider your policy costs due to higher perceived risk. Here are some things that can cause them to spike up your car insurance rates.
- Moving violations such as accidents, speeding tickets or DUI/DWI convictions create more risk for insurers and they’ll raise your rates in response. Sometimes they may even refuse to renew your coverage. Even a minor violation like a speeding ticket can cause a significant spike in your Greensboro auto insurance policy rates.
- Moving your residence to an area with greater traffic and more numbers of accidents will almost certainly cause your insurance rates to increase.
- Dropping your current car insurance policy and not immediately replacing it with another is risky behavior and will cause your new policy (when you get one) to have higher premiums.
- Increasing the distance of your daily commute to work adds risk to your driving routine. Greater risk means higher premiums.
- Buying a new car will raise your rates if you’ve been driving an older model. Expensive cars cost more to fix and, therefore, more to insure. Cars frequently stolen also cost more to insure.