How To Keep Your Car Insurance Rates Low

What causes your auto insurance rates to increase? Wouldn't it be nice if they never increased? I think most of us would be very satisfied if rates only went up every other year. But, of course, typically, that does not happen as most auto insurance carriers raise premiums just about every year. Sometimes, the change in premium is negligible. Other times, it's the dreaded double-figure jump.

Of course it's too simple and easy to blame premium increases to "inflation," but in fai
ess, that is one of the major reasons. There are many components that determine what rate an insurer will charge. But when the cost of the repair of a vehicle keeps increasing every year, naturally, that cost is going to be passed on to the consumer.

The "repair" portion of the equation covers many parts of the process. For example, the average cost of physical damage to your own car increases over time since every 3-9 years you probably buy a new vehicle. And certainly, over time, the value of these vehicles is increasing, along with the hourly charge to fix and service them.

The cost of litigation tends to increase over time, which affects your rate. The cost of legal fees, court costs, atto
ey fees and other related expenses has been rising every decade and that puts a strain on your car insurance rates. The hourly costs of court facilities and other related items is just another factor that must be considered.

Perhaps the quickest way to have your auto insurance premium go up is to have an at-fault accident. Of course, this is not something you do on purpose, but in most cases, your rate will increase. A typical increase may be 10%-20% on the car or driver involved in the accident. If a youthful driver is involved, the increase will be more substantial.

Multiple at-fault accidents could result in even larger increases, especially if they occur within a few years of each other. Usually, the increase on the second at-fault incident is much more than the first one. If the accident is not your fault, you should e able to avoid rate increases. Also, many companies will not increase the rate for an accident if you have driven accident or incident-free with them for a specific period of time.

Moving violations can also potentially force your vehicle insurance premium up. Although a single violation may have a negligible or no affect, more than one ticket can be a problem, especially if they are all within three years. Major moving violations such as DUI, reckless operation of a vehicle, speeding in a school zone and hit and run, will likely cause a substantial increase in the rate.

At-fault accidents and moving violations can also result in the loss of discounts (such as a "good-driver" discount). So in addition to a rate increase, you could lose a discount which doubles the impact of the premium change. Driving slower and more cautiously will dramatically reduce the chances of getting the "double whammy."

Although auto insurance rates are likely to increase, obtaining new quotes online, or reviewing available discounts with a broker may bring you some relief. Also, getting rid of unneeded riders may ease some of the pain as well.