Why are my auto insurance rates going up?

I get asked this question every day. Here are some of the factors that may effect your premium.

1. Credit - Thinking is that the better you handle your credit, the less likely you are to have an accident. (I am not a real believer in this one);
2. Driving History - The more tickets or accident claims you have over a 5 year period, the higher your rates. The assumption is that that make you a higher risk for more ticket and accidents and so you have to pay higher rates;
3. Type of vehicle you drive - The more expensive car you drive and/or the smaller car you drive (usually less crash worthy), the higher the rates;
4. Location -  Insurers usually rate zip codes by the number of accidents and claims that happen in a zip code. If you live in a zip code that has fewer accidents or claims, your rates may be lower;
5. Drivers - Your age and driving experience make a major difference in rates. Younger drivers between the ages of 16 to about 25 tend to have more accidents/tickets due to their lack of driving experience;
6. How you drive your vehicle - Many auto insurers believe that "pleasure driving" is more risky than driving your vehicle to work every day, (I am not a believer in this one).

How do you help reduce your existing auto insurance rates?

Discounts          Discounts          Discounts

1. Auto Pay - Many insurers will give you a discount if you set your payments to be debited from your checking account or credit card;
2. Pay in Full -  Some insurers will give you a discount if you pay your premium in full at every renewal;
3. Multiple Policies - Most companies will give you a discount if you have your auto or home with them;
4. Good Pay -  Some companies will give you a discount if you pay your premium on time every period;
5. Accident / Ticket Free -  Many insurers will give you better rates the longer you are accident or ticket free.

These are just a few ways to save on your insurance. It is ALWAYS best to contact your insurance agent at least 30 days before your renewal to discuss any discounts that you can get or any changes to your policy. Agents are here to give you the correct coverage for the best price. There should not be a "cookie cutter" approach to insurance.