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Ways to Increase Auto Insurance Rates

There are ways to increase auto insurance rates, just as there are ways to reduce them. Sometimes in our hectic day to day lives, we create our own problems with high auto insurance premiums. Car coverage is based on risk and the assumption of risk. As consumers, we pay auto insurance companies to take on risk for us. Although government agencies are often looking out for us, such as the recent Texas warnings to insurance providers, we often must take initiative ourselves to find good deals.  If we're deemed a bad risk, we'll pay more for coverage. The easiest way to increase the price you pay for car insurance is to do something that tabs you as a high risk driver.

Causing an Auto Collision

Your premium is very likely to go up if you get into an at fault auto accident. In fact, in some cases drivers get cancelled by their insurers when these things happen. If you have a cancellation on your record, it is even harder to find affordable coverage. In any case, the increased amount you'll pay is called a surcharge. High risk drivers pay surcharges based on the degree of risk the insurer feels they are taking on by insuring them. Young drivers under 25 pay a surcharge before they ever get behind the wheel. But at fault accidents can be a nightmare for anyone trying to keep their rates low.

Some companies do feature accident forgiveness, which is basically a do over when you have a single accident. Your rates might not increase if your company does offer accident forgiveness, but you have to meet qualification criteria to take advantage of this policy benefit. All in all, it is much better to just focus on avoiding accidents rather than bank on this type of policy bailout.

DUI Convictions and Auto Insurance

Driving under the influence is a huge risk that no one should ever take. Impaired driving poses risks to both you and other drivers and passengers out on the road. If you ever get convicted of a DUI or DWI and your auto insurance company finds out, your rates will greatly increase if you are not cancelled or non renewed altogether. In some policies, this type of offense makes the driver ineligible for enrollment. As a driver with a drinking and driving related offense on your record, you'll be tabbed a high risk driver and face serious economic consequences in your search for insurance, aside from any legal or other consequences you face besides. Stay sober behind the wheel and avoid all of this trouble.

Cars with High Claims Histories

One major component of the underwriting process has to do with analysis of the vehicle being insured. After all, the auto insurance company is insuring the car as well as the driver. Autos that have high theft rates come with higher comprehensive insurance premiums, for example. The reason is simple: there is a bigger risk to insure, so the insurance company has to get more money to cover potential claims payments.

Cars that tend to do more damage and cause more serious injuries in accidents cost more on collision insurance. Large trucks and SUVs fit into this category. So, to keep the cost of insurance down, choose vehicles with low claims histories. Do your homework and run some quotes before you buy a car or truck in order to increase your chance of getting affordable auto insurance.

Modified Cars Auto Insurance Expense

Modified cars are a passion for some people, but all of these aftermarket parts are a nightmare to insure. Repair work is expensive, and theft rates are very high for cars with souped up parts. On top of all this, modified cars tend to come back with higher rates of collision claims because on average they are driven more aggressively than other cars.

If you are thinking about modifying your car or buying a "bling machine", keep in mind that insurance will be a huge expense. These things should be considered ahead of time and taken into account when the cost of the car is calculated. Again, stock vehicles with lower rates of claims are much more affordable to insure.

Make Good Car Insurance Choices

All in all, managing the cost of auto insurance has more to do with making good choices as a policy holder than anything else. There are certain risk factors insurance companies look at that we cannot do anything about, such as age or gender. But others are totally in your control. The more you know about ways to increase auto insurance rates, the more you can avoid that problem and keep your premiums low. Smart auto insurance consumers take advantage of every opportunity to save money, from driving safely to buying cheaper cars to shopping around for low prices. Save money on auto insurance by getting multiple quotes to compare. Use the free quote form at the top of the page to get started, and keep your premiums low.


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