Factors That Change Your Car Insurance Rates

The criteria that affect your car insurance rates may change after you have contracted the policy. Other than the driving record and the number of claims filed in a given period of time, here are some of the main factors that may change the cost of your auto insurance.

Adding A Teen Driver To Your Policy

Teenagers are regarded as high risk drivers, and you will be billed accordingly if you add a kid to your policy. Even though the premiums may increase, you can still save some money if the new driver completes a safe driving course or gets good grades in school. A GPA of at least B (or B+, with some insurers) could entitle you to discount in the range of 10%.

Buying A New Car

If you add a car to your policy, the new premium will be impacted by the vehicle’s safety ratings, as well as safety features and anti-theft devices installed.

Getting Married

Even though car insurance should be the least of your concerns when you get married, it’s good to know that combining policies will usually give you much better rates.

Home Move

If you move within the same state, you will simply need to contact your insurance carrier and update your new contact details. Companies like Esurance will let you do it online, from the web interface. If you move out of state, however, you will need a new policy because requirements vary from one state to another.

Depending on where you move, your premium might suffer some changes. Moving to a bad neighborhood or to a large metro area might get you some higher rates. All areas are evaluated based on the probability of your car being stolen or vandalized and the odds of you being involved in an accident. There have been cases of people who have moved just across the street and their insurance has either raised or dropped.

Sending A Child To College

You should get a lower rate if your kid leaves the car at home and will only drive when he gets back on vacation (you will need to register him or her as a deferred driver). If the kid is going away with a car and is still on your policy, the premium may be raised, because statistics show that kids who live on campuses are more prone to being involved in accidents than the ones who live with their parents.

Work Your Coverage Limits Or Deductibles

If you drive your car every once in a while and don’t cross major interstates, you probably won’t need very high liability limits. After all, what are the chances of you causing a very serious accident if you only drive on weekends from home to the local supermarket? Consider staying with the minimum state-mandated insurance rather than a huge amount you will never use.

Higher deductibles for comprehensive and collision insurance will also get you a lower premium. Granted, you will have to pay more out of your pocket when you file a claim, but you can put some money aside from the savings in the premium and you should cover the difference.

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