Auto insurance does not come cheap. You want to do all you can in order to save on this necessary item. One of the most important steps is understanding the factors that can raise your auto insurance rates, so that you can avoid them to the extent possible. Some are controllable while others are not.
Moving to a higher crime area or a more congested area
According to www.carinsurance.com, your location can change your auto insurance rates. Certain areas are more prone to crime, and thus insurers may charge a higher premium to those that live there. There is more of a chance that the car will get stolen and vandalized, resulting in a claim. Also, if you live in a busy city or suburb you may be more likely to get into an accident than if you live in the country with fewer cars. Higher premiums may reflect this.
You buy a more expensive car
An insurance company takes on more risk when you purchase a more expensive car. If something happens to an expensive car, then obviously they will have to pay out far more than for a claim based on a less expensive car. Other features that you add to the car to raise its value may also make a difference. Higher premiums will reflect this greater vulnerability.
If you get in an accident your auto insurance rates may go up, sometimes substantially. Certain people get into repeated accidents, and the auto insurance companies must take a higher risk by insuring them. Some companies have accident forgiveness to a certain extent, but you should be careful because your rates may be much higher. It can be magnified if you get into multiple accidents over a short time span.
Getting moving violations can also raise your auto insurance premiums. When you commit moving violations, you may be more likely to experience a future accident. The company may look at you as more of a risk than other drivers.
Some insurance companies are even looking at credit ratings. They associate poor credit ratings or a lack of credit with a higher chance of accidents, thus you can have higher premiums to reflect this. Raise your credit score to avoid this.
Auto insurance can be expensive, and you want to keep it as low as possible. Take these factors into account when making decisions about the above issues.