“Another accident,” You think to yourself. “Just my luck.”
If you’ve recently purchased a car or are a long-term owner of one, you might be wondering, “What can lead to an increase in auto insurance premiums?” This article will address this issue by providing 4 reasons why your auto insurance premiums might be higher. We’ll also provide information on how to decrease your premiums.
4 Reasons Why Auto Insurance Premiums Might Increase
There are many reasons why you might have a higher auto insurance premium. We’ll share just 4 of those reasons. For information on why auto insurance is important, read this.
1. You may have a higher auto insurance premium if you have a low credit score
A credit score matters in most areas of life. When it comes to your auto insurance premium, this is also the case. For example, if you have a low credit score, then you might have a higher premium. So, while you can get auto insurance with most insurance agencies, you might nevertheless have higher premiums than other people. The reason that you might have a higher premium due to your credit score is because insurance agencies have seen a link between low credit scores and higher claims.
So, if you want a lower premium, you will need to increase your credit score.
2. You may have a higher auto insurance premium if you have had lots of prior accidents
The more auto accidents you’ve been involved in with your car or other cars, the higher your premium. That’s because most auto insurance agencies do not want to have to lose out on more money than they should. So, if you have been in more accidents, then you should also expect to pay a higher premium.
3. You may have a higher premium if you have lots of tickets
Like being involved in more accidents, the more tickets that you have, the more likely your premium will increase. A parking ticket will not necessarily increase your premium but a speeding ticket will. So will things like driving under the influence, driving without insurance, taking a one-way street, and other issues that result in tickets.
4. You may have a higher premium based on your age
Teens and those in their early twenties tend to have higher premiums than those from other age groups. That’s because this age group tends to have less exposure to driving and are often beginning drivers. This is also true for more mature adults. For example, according to the National Highway Traffic Safety Administration, accidents amongst those who can legally drive are highest amongst those over 65 and those who are 16-25 years of age.
Get Lower Auto Insurance Premiums With Insurance Unlimited of Bozeman
If you’re in the state of Montana, you can get lower auto insurance premiums with Insurance Unlimited of Bozeman.
Here are some discounts that we offer so that you can have lower premiums:
- Having a multi-policy discount: If you have different types of policies with us, then you may qualify for a lower premium. For example, having renters insurance plus auto insurance.
- Paying premiums in full: when you pay the premium for a six month period or for a year, then you can qualify for a lower premium rate.
- Having a monitoring app: when you download a monitoring app that keeps track of your driving patterns, we can also lower your auto insurance premium. When you meet with us, we’ll go over this.
For other possible discounts or if you have any questions, reach out to us at 406-641-7636. You can also contact us here. We look forward to hearing from you.