What Can Cause My Car Insurance Cost to Increase?  

Many variables impact your car insurance rate—some are in your control, and some are not. Understanding the factors that can impact your car insurance rate can help you understand your bill better and help you budget or anticipate possible changes to your rate.

The following factors may increase your auto insurance rates:

• Your claims history—If you file multiple claims, your insurance company may consider you as more likely to file future claims, potentially leading to higher premiums.

• Coverage changes—Adding additional drivers or coverages to your policy will likely increase your premiums. Making adjustments like lowering your deductible can also increase your insurance rate.

• Driving record changes—Any tickets, at-fault accidents, and especially DUI charges will likely increase your auto insurance premium. Some insurers offer accident forgiveness discounts, but serious infractions typically raise your insurance rate.

• Economic changes—Even fluctuations in the overall economy can impact your insurance rate. Inflation and increased labor and medical costs have prompted insurers to raise premiums to offset rising expenses.

• Coverage lapses—It’s important not to let your auto coverage lapse; it’s crucial to make sure you are financially protected in case of an accident, but a gap in coverage can lead to a higher insurance rate.

• Location—Some areas experience higher auto insurance rates because of denser populations and other factors. If you move, you may see changes to your insurance rates.

• Insurance company policy changes—Your rate may increase due to policy changes within the insurance company itself due to no fault of your own. Insurance companies may raise their rates if there is an increase in the number of claims they receive or after reassessing risks in general.

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Craddock Insurance Services can help drivers in Gainesville, Georgia, find the best auto insurance for their needs and budget. Contact us today for a personalized quote or for more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.