Understanding Factors that Cause Auto Insurance Premium Increase
At Patrick McNealis Insurance and Financial Group in Emmaus, PA, we know that understanding the factors that contribute to rising auto insurance premiums can often be complex and confusing. Many consumers believe that simply being accident-free should lead to a decrease in rates. However, various factors play a role in the insurance premiums that each customer experiences.
Here are some events that can cause your auto premiums to increase:
Your Driving Record
Traffic violations and tickets can cause higher premiums because they classify drivers as higher risk of causing an accident.
Your Credit Score
Insurers perceive people with higher credit scores as more responsible. Consequently, they are believed to make timely payments, make better decisions on the road, and file fewer claims.
Effect of Inflation
The escalating cost of goods and services also aligns with an increase in the insurance industry.
Accidents
Insurers measure the risk of accidents when determining how much to charge for coverage. Thus, after an auto accident, premiums tend to rise.
Cost of Repairs
Recent supply chain disruptions and labor issues have affected repair costs, culminating in raised insurance premiums.
Your Driving Habits
Drivers who commute longer distances than the average person are at a heightened risk of experiencing an auto accident. For this reason, insurers typically charge these consumers higher premiums.
Uninsured Drivers
The number of uninsured motorists on the road has risen. This growth increases the risk to insurance companies of having to pay for damages and consequently affects insurance rates.
We Are Here to Assist
At Patrick McNealis Insurance and Financial Group in Emmaus, PA, our knowledgeable agents and staff are ready to address any questions you may have about your auto insurance premiums. Call us today at 610-433-6854.
