There are so many factors that can affect your car insurance premium — including some you might not even expect — but there’s one you can guess has a big impact.
One of the major factors that can alter your car insurance premium are your driving habits, including accidents and traffic violations.
Read on to learn more about how driving habits, along with other factors, affect your car insurance premium.
Driving habits don’t necessarily mean bad driving habits; they also include those good driving habits you have too. In general, insurance companies will use patterns in your driving history to establish how at-risk you are for having an auto accident or incident.
Here are some examples of negative driving habits, or those patterns that can cause an increase in your car insurance premium:
These factors have been shown to increase accidents and incidents, thereby giving auto insurance carriers good reason to increase premiums.
What if you try to hide poor driving habits from your insurance carrier? We don’t recommend it and here’s why.
If you don’t disclose honest information when acquiring your policy, and your insurance carrier discovers it later, coverage may be jeopardized.
If you’ve received a citation or conviction, your insurance agency may not know about it immediately, but they will be alerted when they review your driving record upon renewing your policy.
If you file an insurance claim, the assigned insurance adjuster will perform a full investigation and review of the vehicle, including how many miles are on the car (which could indicate excessive driving), as well as learn how the accident took place (at night or during business hours, etc.).
If you apply for usage-based auto insurance using a mobile app or plug-in device, your insurance carrier will see how long and far you drive, at what times, and certain actions taken by the vehicle (such as hard braking and fast acceleration).
If any of the driving habits from above describe you, take measures below so they don’t become a problem for your car insurance premium.
As you can guess, driving habits aren’t the only factor that affects your car insurance premium. Here are the other big factors you should know about.
Costly cars: The cost to repair or replace a vehicle is factored into your policy’s premium, so if you have a new, higher performance, or costly vehicle, you’ll be paying more for coverage.
Credit score: Statistically, drivers with lower credit file both more and higher insurance claims. As a result, in most states, insurance companies charge higher premiums when you have a low credit score.
Lack of safety features: While better vehicle safety features (such as automatic braking, lane assist, and video while in reverse) will decrease insurance premiums, lack thereof will increase them.
Location: Location can have a big impact on your auto insurance premium. Whether your area has frequent bad weather or high traffic levels, your neighborhood could affect your insurance rates.
By practicing safe driving habits and following the tips outlined here, you’ll be on your way to enjoying a lower car insurance premium.
If you need help finding the best car insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467 or get an auto insurance quote online now.