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Reasons Why Your Auto Insurance Rates Changed

Did your auto premiums change this year?  Here are some of the possible reasons behind the change.

If you noticed that your auto premiums increased this year, there are many possible reasons behind this change.  For instance, the first thing that people think of when it comes to an increase in insurance premiums is a recent accident or a ticket. Or maybe you took a defensive driver course and earned a discount. There are also many other potential reasons for your insurance rates to increase or decrease. Learn about what factors affect your auto insurance premiums.

Keep in Mind…

It’s important to remember that auto insurance companies calculate your premiums based on a number of different factors and how they interact with each other. While an accident, ticket or a defensive driving course can affect your rate, there are other reasons too. For instance:

  • Your Car – Different cars will require different repair costs.
  • Your Coverage – Changes in your insurance coverage will translate into changes in your premiums.
  • Other Factors – Personal factors such as getting married, moving, or even having a birthday can also affect how your insurance premiums are calculated.

In addition to these personal factors, your insurance premiums are also affected by factors that lay outside your control.  For example:

  • Gas Prices – When gas prices are low, people tend to drive more, increasing their risk for a potential accident.
  • New Cars – Getting into an accident with a new car will require expensive repair costs. The more new cars on the road, the riskier you are to insure.
  • Medical Costs – As medical costs increase, your insurance premiums will also increase accordingly. This is to ensure that you are covered for any injuries sustained during an accident.

If would like any tips on how to potentially decrease premiums or would like a free insurance quote then don’t hesitate to contact the experts at Scautub Agency in Scotia, New York.  Our dedicated team is ready to assist you with all your insurance needs.

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