What makes insurance go up

Even something like getting a dog could play a part here. Certain breeds are considered higher risk, and exotic animals are also an issue for insurers. If your credit score goes down due to increased debt, decreased income, missed or late payments, too many credit inquiries, or some other reason, your insurance company may choose to increase your premiums to protect themselves.

And finally, natural disasters can cause insurance premiums to rise for homeowners who have made claims related to those disasters, but also unaffected homeowners in the at-risk area. Even those outside of at-risk areas could see a premium increase if it is a particularly hard year. Other things that could affect your premium include: having a home business with equipment or inventories in your home, buying or receiving luxury goods, and being in a neighborhood where there are a lot of claims being made against a home in insurance policies.

Here are things that insurers consider higher risk behaviors that could lead to an increase in your car or motorcycle premium:. There are also risks that are not specifically related to your behaviors or characteristics.

There are some things that are outside of your control but could still affect your premium, including: rising repair costs, an increase in distracted drivers on the road, more drivers on the road, higher speed limits in your geographic area, and an increase in uninsured drivers.

There are fewer situations in which a person might see their life insurance rates increase, primarily because life insurance is not calculated the same way as other policies.

Many policyholders purchase level-premium policies, which guarantee the same premium for the length of the term. The term length is typically 10, 20, or 30 years long. Once you reach the end of that term, you will likely see an increase in your premium. The coverage also increases over time, in contrast to decreasing term insurance. Depending on certain factors, your auto insurance costs can have a significant impact on your personal finances. While you can save money by finding an affordable insurance company, your premiums may rise over time as you go through certain changes and events in your life.

Find out what makes your car insurance go up. Auto insurance is an important part of every vehicle owner's budget. You need to be constantly on your guard to prevent your car insurance rates from increasing. Knowing the circumstances that can affect your premiums is the first thing you need to do to keep your costs down. According to The Balance , the following are some of the common factors that lead to an increase in auto insurance premiums:.

If you've committed a traffic violation, you can expect your car insurance premiums to go up. Certain violations will have more impact than others.

Traffic violations are generally divided into minor violations, which are failures to abide by traffic rules, and major violations, which are more dangerous offenses. The following are examples of these two types of violations. If you're responsible for causing a car accident and the other driver files a claim, your auto insurance rates will most likely increase. Also, some insurers offer accident forgiveness, which enables you to have one claim filed against you due to an at-fault accident without a premium hike.

However, you have to pay extra for this type of coverage. You should find out from your auto insurance agent if you can purchase accident forgiveness coverage. Depending on your insurance company, filing a comprehensive claim may cause your auto insurance costs to rise. If an insurer's data says that drivers with your model vehicle have been in more accidents or filed more claims, then your rates will be higher.

And just because a car does well on safety tests doesn't mean it will be cheap to insure. Cars with extra safety features, such as collision-warning systems, may add to the price of insurance if the cost to repair or replace the feature is expensive.

For many insurers, there isn't enough proof the added features are worth a discount — yet. A few have started to hand out discounts for advanced safety features. Insurers also want to know why you're driving your car. A vehicle used to commute to school or work poses more of a risk than the car you only take out of the garage once a week. Personal use of a vehicle costs less than business use, since those using their car for business purposes have a higher chance of being in an accident due to increase driving time.

If you use your car at all for business, check to see if it's still covered under your personal auto policy. You may need a business-use or commercial policy instead and be voiding your personal policy by using your car for business. If you use your vehicle for ridesharing, get a policy which covers that specifically. Business and ridesharing policies cost more than personal policies, but that is because the risk the insurer is taking on is more. Your insurer can also try to determine from the length of your commute if you head into a metro area from your rural or suburban home.

If you live outside of Atlanta, for instance, but your commute is 30 miles, your insurer can predict that though your local area is low risk, your commute into the heart of a heavily populated metropolitan area puts you at greater risk.

The more types of coverage with higher limits you have, the more it will cost you since the insurer is taking on additional risk by giving you more coverage. Check your state requirements, keeping in mind that minimums won't necessarily cut it in a serious accident, and compare quotes to see if extra coverage and protection makes sense for your financial situation.

Keep a clean driving record, build a good credit score, purchase a vehicle whose insurance won't break the bank, and choose the right coverages for your needs.

Just because your rating factors aren't perfect doesn't mean you can't get better rates. Each insurance company weighs your risk differently, so make sure you shop around once or twice a year. Find the insurer that is pricing competitively for your particular combination of factors.

Rate quotes can vary by hundreds of dollars or more. Strive to keep insurance companies happy by posing less of a risk with the rating factors you can control, and in turn, your wallet will be happier, too. Mobile nav. Key Takeaways Some factors used to set your rates, for instance your driving record, age and where you live, are weighed more heavily than others, for instance your marital status Many, but not all, states allow the use of age, gender and marital status in setting rates All states but California, Hawaii, Massachusetts and Michigan allow use of credit in setting insurance rates.

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