Why did my Car Insurance Premium Increase?

Have you noticed an increase in the cost of your car insurance? If so, you are not the only person who has gone through this. Every time you receive a bill for your premium you should definitely compare it to the last one. You may find that you are saving money, but more commonly, rates are increased. The question is: why did your car insurance premium increase?

There are many common reasons for an increase in cost, as well as some that you may not be aware of. For instance, any traffic violation or accident could greatly effect how much money you pay for car insurance. Take for instance an accident. If your insurer had to pay $5k to repair your car in an at-fault accident, they are sure to take this out on you the next time they send a bill. Generally speaking, once you are in an accident your insurer will see you as more of a risk. This is why driving carefully is so important.

Your car insurance premium may also increase when you buy a new car, or add another vehicle or person to your policy. You would think that this is common knowledge, but many people are under the impression that the type of car has nothing to do with cost. In other words, they think their driving record is the only factor in determining their rate. Of course, this is not the case. After all, it would take more money to repair a new BMW than a used Hyundai.

If you are unsure of why your car insurance premium increased, the best thing you can do is call your agent or a customer service representative. They will be able to tell you exactly what changed in order to cause a jump in price.