5 Facts that Inflate Auto Insurance Rates
Though America’s economy is still recovering from the recession that kicked into high gear in 2008, people aren’t in the mood to go around wasting money. Sadly, one of the most necessary bills that people face every month, car insurance payments, can also prove to be one of the most costly. In fact, there are several things that can cause these rates to go up, so it’s important for every driver to recognize some of these factors when hoping to save money every month.
1. Physical Location
Unfortunately, a person’s physical location in America isn’t the easiest thing to change without a stash of money put up somewhere. Being that some auto insurers will increase rates depending on the state a person lives in, this can end up being a costly factor in insurance premiums. Certain states, such as California, Texas and Florida, for instance, have relatively high instances of auto theft; and insurers will sometimes take this into account when deciding their rates.
2. Switching Vehicles
Many people don’t recognize it, but even changing vehicles can result in an increase in auto insurance rates. Newer vehicles, especially rare automobiles or those whose replacement parts are hard to find, cost more to repair than older vehicles. This should always be a consideration when purchasing a vehicle. Many autos from the early 2000s are just as reliable as the ones rolling off the “new” lot today.
3. Auto Accidents
Auto accidents are one of the most common events that can raise auto insurance rates. Insurers see those who have caused an accident as being higher risk. Unfortunately, some people who are involved in accidents are in circumstances that have already raised their rates. A recent story of a Miami woman who was involved in an accident with a police cruiser, for instance, could very likely result in a very high premium for the woman since she lives in Florida, one of the states with high auto theft rates, in combination with being in an accident.
Those who hope to avoid these cost increases would do well to seek out an attorney. An insurance company will have no legitimate reason to raise a person’s rates if another driver was at fault for the collision. In addition to the woman hiring a Miami accident lawyers group, she could’ve preemptively helped herself by seeking out insurance with an “accident forgiveness” clause.
4. Increased Driving
Insurers will also sometimes increase a person’s premium rates if they notice a substantial increase in miles driven. One way to avoid this is by using public transportation or relocating if a new employment or educational opportunity opens up that involves a substantial commute.
Sadly, age is also a deciding factor in auto insurance rates. Drivers under the age of 25 can see substantially higher rates, but even mature adults who have hit the age of 50 will see increases. Sadly, the only way to minimize these increases is by staying between the ages of 25 and 50 for as long as possible.
It’s not legally possible for a person to avoid insurance premiums if they’re driving on America’s highways, but a little bit of knowledge can go a long way in keeping these rates down. Though a person can’t control every factor that could influence insurance rates, simply working around the ones they can control can save substantial amounts of money.
Lisa Coleman shares several facts that will naturally increase someone’s insurance premiums, and how a few can be avoided. She recently read online how a Miami accident lawyers firm can help when a client has been involved in an auto collision.
Photo Credit: http://www.flickr.com/photos/86530412@N02/8266216454/
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