Why are my car insurance rates high?

Auto Insurance rates depend on several factors from age and driving history to the details of the vehicle. Have you been rated higher than average on your auto policy. Below are a few reasons why your Insurance rates may have increased.

Tickets and accidents are the number one cause for high insurance rates. The more tickets you have, the higher risk you are to insure. Speed is the main cause behind fatal accidents. To cover this type of risk, the insurer most charge a higher premium to groups of drivers with less than perfect driving history.

Avoid lapsing your coverage at all times. When you cause a lapse in coverage the uncovered dates are reported to Clue. Clue is a reporting agency all Insurance companies are tied with. In a way Insurance is like credit. Insurance rates are increased when a lapse is reported. Interest rates are in increased when a history of late payments is recorded.

Sometimes rates are increased regardless of what the choices made by the insured. If an insurance company experiences a loss in revenue they must make necessary changes to their rating structure. If toilve ever experienced an increase in premium at time of renewal, this could also be the reason for it.

While some companies have rate increases, others have rate reductions. This is why its important to comparison shop at least once a year.

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