Here are some of the factors that can raise your auto insurance rates.
While no one wants to pay more for their auto insurance than they have to, sometimes there are legitimate reasons that explain why your insurance rates are on the higher side. Curious to find out why your car insurance is more expensive? Here are some of the reasons that could explain your higher rates.
- You Drive a Specialty Vehicle
If you drive a specialty or high-maintenance vehicle, you shouldn’t expect your financial investment to end at the dealership. Drivers who own specialty vehicles tend to have higher insurance rates than drivers who own standard vehicles. This rate disparity is because specialty vehicles tend to require specialty parts, specialty services, and have higher repair costs when compared to standard cars.
- You Set a Low Deductible
Your insurance deductible refers to the amount of money you agree to pay towards a claim before your insurance coverage kicks in. For instance, if you have a deductible of $500 and get into an accident, you would have to pay $500 worth of repairs before you could access your insurance coverage. It’s important to understand that your deductible and premium have an inverse relationship. This means that the lower your deductible, the higher your insurance premiums will be. If you want to reduce your auto insurance rates, consider raising your deductible.
- You Have a Poor Driving Record
Finally, if you have a history of traffic violations or filing insurance claims, you should expect to have higher insurance rates. This is because your spotty driving history will cause insurers to see you as a reckless driver. Reckless drivers are riskier to insure, and this increased risk will translate into higher insurance costs. If you would like to reduce your rates, focus on improving your driving record. Over time, you should start to see your rates drop.
These are some of the reasons why your auto insurance rates might be on the higher side. Do your have more questions regarding your auto insurance? Turn to us at Stromsoe Insurance Agency in Murrieta, California. Our dedicated team is ready to assist you with all your coverage needs. Contact us to get started today.