What Caused My Car Insurance Rates to Change?

Year after year, auto insurance policy premiums seem to always be going up. You may not be doing anything different, but you are still affected. There are certain situations in which changes in your personal life may cause your rates to fluctuate. Understanding how these changes affect your insurance will explain a lot when you take a moment to go over your policy. Stay in contact with your insurance agent and ask questions whenever they arise. It’s better to stay informed than to constantly worry.

What Causes Rate Fluctuations?

Several factors can cause your auto insurance premiums to fluctuate. Some of the most important factors considered in determining premiums include:

  • Marriage/divorce
  • The birth of a child
  • Death of a spouse
  • Adding a student driver
  • Major illness or health issues
  • Your credit
  • Increase in your income

Experiencing any of these lifestyle changes can cause an increase or decrease in your premiums. Talking to your agent will help you understand why the fluctuation occurs. They can also help you take advantage of any discounts you may be eligible for, such as safe driving discounts.

Why Does It Continue to Increase?

Other outside influences will cause your insurance rates to increase. This will happen no matter what you do. A few of these factors include:

  • Where you live
  • The environment where you drive and park your vehicle
  • Your vehicle itself

Upgrading your vehicle is one of the most common causes of an insurance spike. If you have taken a loan, you will be required to purchase comprehensive insurance coverage to protect the bank’s investment. These fluctuations deal more with the world around you instead of your personal situation.

Talk to Your Agent

Your agent is the first person you should talk to when you have questions concerning your car insurance premiums and how they are determined. Ask them to perform an audit on your policy and go over each part of the policy, point by point. If you see something you don’t understand, make sure they explain it to you. There are times when your agent may be able to save you some money. Student driver discounts and bundling all of your policies into one are just two ways you can save money on your monthly premiums.

Understanding your auto insurance policy and why your premiums change will help you budget properly. If you have questions about why your premiums change and what you can do to keep them within a manageable range, contact the experts at James Page Insurance today. We are ready to assist with all your insurance needs.

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