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Surprising Reasons Why Car Insurance Premiums Can Get More Expensive

Wednesday, 10 June 2020 12:10 PM

Internet Marketing Company

LOS ANGELES, CA / ACCESSWIRE / June 10, 2020 / Compare-autoinsurance.org has launched a new blog post that presents the reasons why car insurance gets more expensive even if the policyholder didn't file a claim, received a ticket, and wasn't involved in an accident.

For more info and free car insurance quotes, visit https://compare-autoinsurance.org/top-reasons-why-you-can-get-more-expensive-car-insurance-premiums/

Car insurance premiums can fluctuate wildly based on several different factors such as getting married or moving to a new neighborhood. Car insurance companies are for-profit businesses. To ensure they make a profit, insurance providers use hundreds of factors and mathematical equations to calculate risk. Based on these factors, insurers will determine how much a policyholder will pay on its premiums. The insurance companies can change the price of the premiums whenever the risk changes or when their cost of doing business rises.

The most common factors that can determine car insurance premiums to increase are the following:

Internet Marketing Company, Wednesday, June 10, 2020, Press release picture

  • Moving to a new place. The ZIP code plays a huge role in determining car insurance premiums. A ZIP code in the suburbs may have a significantly lower risk than a ZIP code in a bad neighborhood. Policyholders that have a ZIP code in a rural area that has lower accident rates will pay less on their premiums than those that have ZIP codes of cities filled with freeways and lots of traffic.
  • Bad credit score. Policyholders who saw their credit scores plummet due to bankruptcy or due to other reasons are likely to see their car insurance rates rise significantly.
  • Rising accident rates in the region. Policyholders who live in states that experienced a surge in the number of accidents in the past months or years will notice that their insurers will increase the premiums to compensate.
  • Higher labor or equipment costs for car repairs. Insurance providers need to pay to repair or replace a vehicle after an accident. The price of labor or equipment doesn't stay the same and they continue to rise. Also, the cost of buying a new vehicle might have increased.
  • Increasing numbers of distracted drivers, collisions, and other incidents. In recent years, the number of distracted drivers on the road has increased in most states. For this reason, the risk of car insurance companies has also increased.
  • Increasing numbers of uninsured drivers. 1 in 7 drivers in the US is uninsured. In some states, nearly 1 in 5 drivers are uninsured.
  • Increased speed limits. In the US, higher speed limits are linked to higher rates of traffic fatalities. Whenever a state raises its speed limits, the car insurance companies from that state will also raise insurance prices to cover the higher risks.
  • Bad weather. Extreme weather events like wildfires, floods, hurricanes, and blizzards are increasing in likelihood and intensity every year. For these reasons, insurance providers are raising their prices on insurance.
  • Insurance fraud. Insurance companies spend billions on insurance fraud. Policyholders will pay more on their premiums if they live in areas where insurance fraud cases are surging.
  • Rising medical costs. Insurance providers are required to pay expensive medical bills after an accident. As medical costs continue to rise in the US, providers need to raise premiums to compensate.
  • Natural disasters. Natural disasters such as hurricanes, tornadoes, or earthquakes can seriously affect an insurance company. In order to compensate for their losses, they can raise the premiums of those policyholders living in the disaster-struck regions.
  • Old age. Drivers who are in their 70s or 80s should expect to have their premiums increased by their insurers. Statistics show that older drivers in this age range are more likely to make a claim.
  • Higher costs of doing business. Costs related to new regulations or requirements introduced by the state are passed down to the policyholders in the form of higher premiums. The same happens if the insurers have higher overhead expenses.

For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/

Compare-autoinsurance.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.

"Even if they don't make a claim or cause an accident, drivers can see their premiums fluctuate from year to year. However, insurance companies are likely to raise the cost of insurance only if the customer is riskier to insure or if their costs have increased", said Gurgu C, Project Manager of Internet Marketing Company.

CONTACT:

Company Name: Internet Marketing Company
Person for contact Name: Gurgu C
Phone Number: (818) 359-3898
Email: [email protected]
Website: https://compare-autoinsurance.org/

SOURCE: Internet Marketing Company

Topic:
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