Understanding the Ups and Downs of Auto Insurance Premiums
What Can Cause Auto Insurance Premiums to Be Adjusted?
Claims costs have a direct impact on your premium. Over the years, we have seen an increase in auto repair and medical costs. Patterns of catastrophic weather, specifically the increasing number of occurrences of wind, hail, snow and ice claims and the significant resulting damages, can lead to increased claim costs as well.
Your driving record can impact your premium. If you have been in an accident, especially if you were at fault, your auto insurance costs are likely to be higher than someone with several years of accident-free driving. The severity of the accident and the cost of damages may result in a rate surcharge for a period of time. This surcharge typically decreases gradually each year you go without another accident.
Depending on the type of infraction, tickets and violations may impact your insurance premium as well.
Discounts that you no longer qualify for may lead to a higher premium.
Changes in your household can also impact your premium. The type of vehicle you drive, the drivers that are using your vehicles, even where the vehicles are parked are all factors that have a bearing on the cost of your insurance premium.
All coverages and discounts described are subject to change, availability, qualifications, and certain restrictions. Other terms, conditions, limitations, and exclusions may apply.
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