Talking About Auto Insurance Options

3 Reasons You Are Paying More In Auto Insurance

by Megan Ortiz

Everyone wants to save money when it comes to insurance. You might think that you initially are getting a good deal on your insurance, and then after add-ons you find yourself paying more than you wanted. In addition, over time you might see your premiums increase. It can be confusing to understand why this is happening. Here are some reasons that your premiums may have gone up.

1. You Were In A Car Accident

One of the main reasons your premiums will go up is that you were in a car accident. It is very normal for your insurance provider to increase your premiums right after a car accident. This is because they had to pay more to fix the damage to the car, if the accident was your fault, and so they will charge more in the future because they no longer think you are a careful driver. However, over time it will go back down if you can stay away from getting tickets or getting in an accident. Just know, following an accident that you caused, you will pay more in auto insurance.

2. You Are Driving More

When they calculate your insurance they will base the price off how much you are driving. Thus, if you are driving only a small amount, like back and forth to work, which is close to your house, then you will pay less in insurance. However, lets assume that now you are put on a sales position that requires you to travel and drive around the region. In this case, you would be driving more, so there is more of a chance for you to get in an auto accident, or have a problem with the car that would require that you access your policy. Thus, your insurance premiums will raise and you will pay more each month.

3. You Bought A Nicer Car

When you purchase your auto insurance they base the price off how much your car is worth. If you are driving an older car that is cheap to fix, then you will pay less in insurance. However, if you have a foreign made, nice, expensive car, you will pay more in insurance. Getting the parts for this car could be more expensive, not to mention the actual cost of the car is higher. Thus, the more expensive and nicer the car, the more you will pay in auto insurance.

By recognizing these reasons you will be paying more in your auto insurance you can be prepared for any changes in your auto insurance policy. For more information, contact a local agent (like those at Manassero Insurance Agency Inc).