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Three Auto Insurance Cost-Increasing Factors And How To Handle Them

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When it comes to rising auto insurance costs, people most often attribute this scenario to claims. Given that a recent history of a claim's submission increases a driver's risk, some vehicle owners assume that this situation is the only thing that can lead to an increase in cost. However, other factors can change your costs. Learn what some of these changes are so that you know how to handle or eliminate them.

Credit Changes

Auto insurance is based on risk and not just your risk as a driver. Financial risk also plays a role. Drivers who experience a decline in their credit score may see an increase in their insurance premiums when it is time to renew. 

Make a calendar that details all your payment dates to ensure you make on-time payments to help prevent a drop in your credit rating. Keep in mind drivers will typically only see a premium increase if the change in credit status is significant. A score that drops by a few points will likely not cause any issues. 

Family Changes

Did you have an adult child recently move out on their own? Did you recently go through a divorce? Answering yes could be the reason for a cost change. An insurance company often offers a multi-vehicle discount when multiple vehicles are on a policy. 

To combat this issue, contact your insurance company and let them know of the impending change and ask if there are any other discount options you can qualify for to avoid an increase in costs. Additionally, if you know you have one of these life-changing events coming up, request a quote from the insurance company early to prepare for any price changes. 

Regional Fluctuations

Sometimes the reason for an increase has absolutely nothing to do with the driver. Instead, it results from changes in the community where they live. An increase in vehicle break-ins, an uptick in accident claims, and even a record of underinsured drivers in a local area can lead to an across-the-board rate increase for drivers in the area. 

Installing a roadway monitoring system, installing a car alarm, and parking your vehicle in a garage are just some ways to lower your rate to thwart these costs. Inflation issues that increase the price of auto repairs in your area can also lead to increased costs. 

For more info about automotive insurance, contact a company in your area.