Factors that Affect Auto Insurance Premiums

Man holding steering wheelYou open your insurance bill and you find that your premium was increased by your provider without your approval—or so it seems. The truth of the matter is, you may have simply overlooked or forgotten about certain stipulations in your auto insurance policy which is why the increase came as a surprise. Most policyholders only keep in mind the general premises that prompt insurance companies to increase their premiums: filing a claim, being convicted for a DUI or DWI charge, and requesting for an SR-22 certificate. But there are other factors—uncommon as they are—that can affect your premium as well.

3 Uncommon Factors that Affect Your Premium

1. Age. If you noticed the increase after you turned 50, your age could be the reason behind this. Most insurance providers automatically increase the auto insurance premium of policyholders once they reach the golden age of 50. This is because most insurers consider older policyholders as high-risk, concluding that they are more likely to be involved in road accidents.

2. Credit Score. It’s not a common practice for insurance providers to inform their clients that their credit score played a role in determining their premium. However, you should be aware that any change in your credit score—especially when you incur a credit score that is lower than when you initially took out a policy—will significantly affect your premium.

3. Driving More Miles. If your insurance provider learns that you are now driving more miles because your place of work is now farther away from your home, you should expect an increase in your auto insurance premium. This is because insurers deem that the more time you spend driving on the road, the more likely you are to get involved in a road accident.

Additionally, single policyholders are given a higher premium because insurance companies consider married policyholders as lower risks based on the assumption that they are more careful drivers.

Please contact Breathe Easy Insurance if you would like us to help you obtain car insurance coverage at a more affordable premium. To get a free insurance quote, you may call us at 866.822.7755.