Auto Insurance Rates on the Rise
Auto insurance claims are becoming more expensive and more frequent. Auto insurance rates are increasing across the board to cover these costs and ensure that you and your assets are adequately protected. The following are three reasons why auto insurance rates are rising and some suggestions for reducing them.
Rates Increasing: Why?
There was an increase in claims in your state or city
Natural disasters, theft and vandalism are covered by comprehensive and collision insurance. These include a tornado, a car accident and other natural calamities. Hailstorms or civil unrest in your city or town can cause the number of insurance claims from drivers in your area to increase, too.
A new ZIP code was assigned to you
Changing your address can affect your insurance rates, even if you are only moving a few blocks.
Your ZIP code is taken into account when calculating insurance rates. In a densely populated area with a high risk of theft, the insurance rates will likely rise.
An accident that happened to you
Auto accidents can cause significant financial damage, which is why having car insurance is so essential. Depending on your state and insurance provider, your insurance rates may rise even if the accident wasn't your fault. Multiple no-fault collisions may also cause an increase in rates.
You had a drop in your credit score
Many insurance companies use your credit score to determine your auto insurance rates. You will find that the lower your credit score, the higher your car insurance rates may be. The lower your credit score, the riskier you seem to insurance companies.
How can you manage the rate increase?
Benefit from applicable discounts, such as Drive Safe & Save®, the Multiple Line Discount and the Steer Clear® Safe Driver Discount for those under 25.
By increasing your deductible, you may be able to reduce your monthly premium.
You may want to consider taking a defensive driving course or reducing your insurance coverage if your vehicle is older.
There is strict regulation governing insurance rates and any increases that may occur according to state laws.