March 30, 2011

Why Car Insurance Rates Might Rise Suddenly For Certain Drivers

The fear of higher automobile insurance rates is a huge deal to car owners. You may be used to insurance premiums remaining steady each year on renewal. However, at some stage you will be faced with rising rates.

There are several reasons why a car insurance premium will rise. If you happen to invest in high end sports model cars at the age of retirement, then rising rates will be applicable. You will need to pay premiums on par with those for a teenager in the same category. The risks involved in terms of age are considered the same. The risks as a youngster are the inexperience that comes with driving and the possible levels of irresponsibility. For the senior citizens, it is the age and the possible loss of faculties that determine how high automobile insurance rates go.

The city you live in or move to could also be the reason for higher car insurance premium. Residents of no-fault states have higher premiums than others. If you have a policy with lower deductibles, then you will subsequently pay higher premiums. This is one of the fine prints that you will need to keep an eye on. The number of minor claims you make for dents, glass replacement and the like will also affect your premium rates. One accident or speeding ticket may not affect your credibility, but at least 5 tickets with an average of 10 mph over the speed limit can cause your premium to go up.

Your experience as a driver counts when it comes to higher premiums at the time of renewal. If you have been involved in accidents, DUIs or DWIs, then there are chances of a higher premium. The kind of car you buy will also be a determining factor for insurance companies when it comes to setting your premium rate. Several statistical studies are carried out by insurance agencies, and these determine how prone a car model is to accidents. The same goes with geographical regions and how prone they may be to allowing accidents to occur.

In almost all cases, you will be able to get a decent discount on your premium. But you have to understand that there is an upper limit to how much these discounts can be. And as substantial as the discounts seem, the premium is still going to be on the higher side. One of the best places to find the lowest car insurance offers is online. Once you are done with your preliminary research, ask for free premium quotes from a few different agencies. Read the fine print from each of them to see who will give you a better deal. Base your choice on this.