Did you notice a change to your insurance premium? Have you recently renewed your auto insurance? Or did you get a new quote?
If you found yourself left with a high auto insurance premium, you aren’t alone. Many people’s premiums change for the worse due to several factors, some of which can and cannot be controlled.
7 Factors Effecting Your Auto Insurance Premium
Several factors can impact your customers insurance premiums. If they’re asking why their premium is so high, look into these 7 factors as possible reasons:
- Credit Score
- Most people make the mistake of thinking their credit score won’t effect their premium, or at least not that much. Don’t be surprised though when it causes your premium to be high. Studies show that people with poor credit file more claims.
- Type of Car
- If you have an expensive car (Audi, BMW) you might pay a higher premium due to the cost of replacement parts or if it is stolen.
- To lower your premium, consider a car that scores high on safety tests because they tend to have lower rates.
- Age, Marital Status and Gender
- If you’re under 25, your premium might be higher due to studies that have shown more reckless behaviors. This is also true for those who are unmarried.
- If you’re a woman though, you might save on your premium because they typically pay less than men.
- Uninsured / Driving History
- If you’ve been involved in any at-fault accident or moving violation, your rate will be higher. If you show that you’re a risky driver, you’ll end up paying for it. Most records are cleared 3 to 5 years after they occur except DUIs which can last as long as 10 years if not more.
- A sure sign that you’re a risky driver is if your uninsured or you have a lapse of coverage. You will most likely be classified as a high-risk, high-cost customer.
- Where You Live & Miles Driven
- Where you live comes into play if vandalism and theft are common. It can also be a source of potential accidents which can raise rates.
- Also, most people don’t realize that if you drive more than 15,000 to 20,000 miles a year can lead to higher rates. Keep your agent up to date if you fall into this category and switch jobs, move, or will be driving less.
- Education and/or Job
- Homeowner or Non-Homeowner
As you can see, insurance premiums aren’t just reflected by your driving history. There are a lot of factors that can impact your premium. If you’re unsure of anything, ask your agent. They understand or at least can find answers for questions in regards to your premium.
Don’t hesitate to call American Heritage Insurance Group at 513.984.5255. We have agents who are ready to help you obtain a low premium with the best coverage options.
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