Auto insurance is something every driver must possess, but it can get expensive. There is nothing worse than opening up your car insurance bill and realizing that your premium has gone up. It can definitely do a number on your monthly budget. A number of factors can cause your car insurance premiums to spike, and it is important to know about them. Here are seven things that can make your car insurance go up.
Increasing Your Commute to Work
Did you recently get a job that requires a longer commute? If so, do not be surprised if your auto insurance rates increase. The longer you have to drive, the more likely you are to get into an accident. Insurance companies know this and want to protect themselves. It may be wise to try and find a job position that is closer to home.
Moving to a New Location
It might not seem fair, but moving to a different location could increase your car insurance rates. If the city you move to has a high number of claims, expect to get charged higher premiums. Before you decide to move, it is a wise idea to research the auto insurance rates people in that area are paying. In addition, moving from a rural area to a crowded city can make your car insurance premiums go up. There is more traffic in bigger cities, so drivers are more likely to have accidents.
Having a Low Credit Score
When you have a low credit score, you not only have to worry about getting denied for home loans, a poor credit score can also mean higher car insurance premiums. A study conducted by InsuranceQuotes.com found that drivers with poor credit scores can expect their car insurance premiums to nearly double. Many insurance companies see individuals with low credit scores as less responsible than those with higher scores. If you have poor credit, you can work to increase your score. In addition to paying all of your credit cards on time, pay more than the minimum each month and do not open up any new credit cards.
Driving a Sports Car
Driving around in a sports car can impress your friends, but it may come with higher car insurance premiums. A sports car has a bigger engine than a traditional car, so you can drive faster and increase your risk of having an accident. It is wiser to choose a more practical vehicle such as a mini-van.
Being in Certain Professions
Your profession can also have an effect on your auto insurance rates. If there is a correlation between your profession and risk of accident, your car insurance premiums could go up. For example, delivery drivers are on the road a lot and more likely to get into accidents.
Your Friend Wrecks Your Car
If you let your friend drive your car and he gets into an accident, your car insurance rates will likely go up. You might not have been behind the wheel, but your car still got damaged. Take caution when allowing your friends to borrow your vehicle.
Parking on the Street
Parking your car on the street can raise your insurance rates because it is more likely to get stolen. If you have a garage at your property, you should always park your car in it.
Seeing your car insurance rates go up can definitely be frustrating. If your premiums have recently gone up and you do not know why, you should make an appointment with your insurance agent. They will help you figure out why your car insurance rates went up.
For more information, contact a local auto insurance company.