Between covering necessary expenses and saving up for those items on your wishlist, no one wants to spend more on their insurance policies than they have to. Unfortunately, you may be required to pay more for your monthly car insurance premiums after certain events. This rise in a regular expense is often an unwelcome surprise for the average driver, and if you’re wondering why your car insurance may have increased, consider the following possibilities.
5 Reasons Why Your Car Insurance Premium Went Up
1. You Got Into an Accident
If you were involved in an automobile accident, you likely filed a car insurance claim or had a complaint filed against you. In this case, your provider may recognize the accident as evidence you are more likely to get injured or damage your car, thereby raising your monthly premium. Inquire about safe-driver programs or accident forgiveness that could lower your premium if you adhere to specific rules and regulations for a specified period.
2. You Were Diagnosed With a Health Condition
If you went to the doctor and were diagnosed with a degenerative disease that affects your motor skills, you likely had to notify your insurance provider. In this case, they will assume you are more likely to have problems maneuvering the vehicle and are more of a liability to them.
3. You Got Rid of a Vehicle
If you had multiple cars signed to your insurance policy, you might have received a multi-car discount from your coverage provider. Therefore, selling or donating one of these cars and removing it from your policy will remove the discount and affect your overall cost.
4. You Moved
Did your car insurance rates rise after you moved to a new part of town? In this case, your insurance provider has recalculated your premium based on the crime rate in the neighborhood, or how prone the area is to natural disasters such as flooding. If you live in a riskier community, your premium will be higher than those in a more stable region.
5. There Were More Claims in Your Area
Even if you didn’t move, your insurance company is always taking into account the various aspects of your lifestyle. Where you live and how that area handles specific insurance claims can have a direct effect on you. Although you may have had a lower rate in the past, an uptick in claims in your neighborhood could indicate that the area has become more dangerous and this will be reflected in your premium.
If you’re worried about rising car insurance rates, reach out to Allstate Insurance Companies today. Based in High Point, NC, Dewey Beckner has over two decades of experience helping area residents find policies to meet their needs. Whether you need to safeguard your home, your business, or your car, call him today at (336) 884-5636 for a reliable quote. You can also visit the website to learn more about various coverage options.