If your car insurance bill has gone up, you may be wondering why this is the case, especially since you haven’t gotten into an accident. Let’s take a look at why this may occur below.
Can Car Insurance Go Up Without An Accident?
Car insurance rates can increase due to a variety of reasons. Simple things like the area you live in or even the state of current car prices can impact your insurance rate.
Reasons Why Car Insurance Will Increase Without An Accident
It’s well known that auto insurers will calculate rates based on a driver’s age, gender, specific type of coverage, and deductible amount. There are several factors outlined below that can impact your car insurance rates.
ZIP Code
Insurers always take your ZIP code into account. They will evaluate the risk data for that certain area when calculating your premiums.
If insurance claims rise in your area, it’s possible that your insurer will raise your rates. Similarly, your premiums may be higher if you live in an area that features more traffic, accidents, and crime.
Adding A Driver
If you have recently added a significant other, teenager, or other driver to your policy, your rate will likely raise.
Insurers take into account the driver’s claim history, driving record, and relationship to the policyholder. Statistically, teenagers and new drivers have higher accident rates, which ultimately impacts your premiums.
Driving Record Violation
A driving record is typically the biggest factor any auto insurance company will consider. Even if your record is accident-free, your insurer can raise premiums for other violations, such as speeding or reckless driving.
Moving violations usually stay on your driving record for up to 5 years. Rates can be higher until these ultimately fall off your record.
Filing A Claim
Even if your record stays accident-free, your insurer could raise your rates simply because you’ve filed a claim in the past few years. Even comprehensive claims like weather damage can result in an increased rate.
Drivers could pay out of pocket for minor damage like dents or scratches. This will avoid the need to make unnecessary claims that can drive up your rate.
High Repair Costs
Inflation causes prices to go up across most sectors of the economy, and auto insurance is certainly one of them. When car prices go up, repair costs climb too.
Consequently, auto insurers need to raise policy premiums in order to keep with up with rising expenses.
Coverage Change
While reviewing your policy discounts, check your coverage options, as well. If you recently lowered your deductible, this may explain why your rate increased.
Lower deductibles generally mean higher premiums. Adding extra coverage like roadside assistance can also raise your rate.
Losing A Discount
Most insurers offer discounts designed to reduce your policy premium. These include savings for bundling multiple policies or even going paperless, for example.
Your premiums may raise if you lost a discount recently. Always review your policy to see if you lost any discounts, resulting in a higher rate.
Credit Score Lowers
A recent dop in your credit score can lead to a higher car insurance bill. In states where it is allowed, insurers often use a credit-based insurance score when both calculating premiums and assessing risk.
Anything from a missed payment to a higher debt balance can negatively affect your credit score, leading to a higher rate.
Heath’s Auto Service In Cottonwood, AZ
At Heath’s Auto Service, our comprehensive range of services covers everything from routine maintenance to complex repairs. Our certified technicians are skilled in handling oil changes, brake inspections, engine diagnostics, tire rotations, and much more. Whether it’s a minor tune-up or a major overhaul, trust us to get you back on the road with confidence. Contact our team at Heath’s Auto Service today!
