Personal Finance

3 Leading Causes of High Auto Insurance Rates

If you’re constantly surprised with the astonishingly high car insurance quotes you are receiving from insurance companies, it’s time to dig deeper into the issue

If you’re constantly surprised with the astonishingly high car insurance quotes you are receiving from insurance companies, it’s time to dig deeper into the issue and see if you can bring the price down in some way.

Your auto insurance premium may be high for various reasons, some of which are as follows.

Driving record

If you have several traffic violations on your driving record in the state, this will greatly affect your insurance rate. Sometimes even having a single ticket on record can significantly impact the quote insurance companies will offer you.

Traffic violations are of two types: major violations—such as fleeing from cops, racing, reckless driving, homicide, driving with suspended license; and minor violations, which include over-speeding, ignoring a traffic sign, taking over another vehicle incorrectly, incorrect reversing, etc.

Before you request quotes from insurance companies, check what active violations are listed in your driving record in the state department of motor vehicles. You can avoid some of the violations from affecting your insurance price by either purchasing violations forgiveness or by taking a driving test at a local driving school (if that will help keep your insurance cost from going up).

Type of coverage

Auto insurance offers several different types of coverage. You can opt for the most basic coverage knows as collision coverage, to cover any type of collision. This will have a lower premium rate than comprehensive coverage, which provides protection against a whole range of events such as fire, theft or hitting an animal while driving.

Then there is liability coverage, which, as the term indicates, provides protection against any liability you may incur because of damage to another person’s vehicle or property caused in an accident. Lastly, more and more auto insurance customers are also exploring medical insurance, which can be used to pay for medical expenses in case of an accident.

Your insurance premium will vary depending on the level of coverage you choose to buy and any mandatory coverage required by the state. Do a thorough comparative analysis of different plans to get the best deal. You can do this online or with the help of a professional insurance agency such as http://www.georgiasfinestins.com, who will help you get multiple quotes from several different insurance companies and assist you in making an informed choice.

Credit rating

Yes, your credit score affects your automobile insurance price as well. While some states restrict insurance providers from basing your insurance premium on your credit score, others have no such provisions. If you’re reeling under a poor credit score at the time of purchasing auto insurance, check if your credit history will impact your insurance pricing.

Another factor that affects insurance costs is your location. Certain areas in large cities attract higher premium rates than others, possibly because insurance companies view these areas as prone to accidents, auto theft, and so forth.

Lastly, the price of vehicle insurance can also be affected by factors such as age of the driver or a lapsed insurance policy. Investigate each factor carefully to know why you’re being quoted high insurance rates.

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