What Can Increase Your Car Insurance Premiums?

January 27, 2012

Before you purchase a car insurance policy, it is wise to find out what can increase your car insurance premiums. By understanding the factors that can increase your insurance costs, you can help try to limit behavior that will end up costing you in the long run.

Factors that will increase car insurance premiums

Being involved in an accident can increase your car insurance premiums. You can be financially penalized for up to five years. But the longer that you maintain a clean driving record, the lower your premium.

If you increase the yearly amount of miles that you drive, this can increase your car insurance premiums. The insurance companies figure that the more time you spend on the road, the more at risk you are of being involved in an accident.

If you move from a less populated area to a more congested geographic area, you can expect a rate increase in your car insurance premium. If you move to an area with a higher crime rate, your premiums will be raised.

How not to increase your car insurance premium

Some accidents are out of your control. However, by maintaining the proper speed limit, driving safely, and not driving after consuming any alcoholic beverages, you can maintain a safe driving record. This will keep your car insurance premiums from being raised.

Just remember that when you purchase a car, the less expensive the car, the lower your car insurance premiums will be. A high credit score can also keep your car insurance premiums from going up.