Why your Car Insurance Rate May Increase

Car Insurance Rate Can Change.

I want to assume that you don’t like paying high car insurance rates. In fact, one of the reasons you see people shopping around for car insurance, is because they are looking for cheap car insurance rates. Of course, it is possible to get cheap car insurance rates. I covered how one can achieve this in one of my earlier articles.

Read Also: How to Get Really Cheap Car Insurance Quotes

Today, let’s focus on why your car insurance rate may increase beyond what you paid in the previous year. The fact that you were able to get cheap car insurance rate is not a guarantee that the rate will remain at the same level. Things can change, including your car insurance rate.  Do you want to find out why you may likely pay higher rate as against what you paid in the previous year? Find out below:

You drop your deductibles. If you can still remember, I mentioned that one of the ways by which you can enjoy cheap car insurance rates is by increasing your deductibles. This is true. However, if it happens that your level of income has dropped which may make it impossible for you to pay your deductible in case of accident, you may decide to lower or remove your deductible. This will eventually increase your car insurance rate.

You withheld secrets from your insurance company. You owe your insurance company the duty of full disclosure. If you lied or kept vital information from your insurance company and the company later found out, your car insurance rates may suffer outright cancellation or be reviewed upward.

Accident: The essence of buying car insurance policy is to transfer the risk involving your car to your insurance company. Nobody can say with certainty whether accident will happen or not. However, if you are involved in an accident and you are found to be the one at fault, this can increase your car insurance rate any time you want to renew your policy. Some insurance companies offer accident forgiveness but this will only apply to your first accident. Road Safety Corps usually advise that some of the accidents that occur are actually avoidable. If you take practise some safety precautions, you will reduce the chance of getting involved in an accident. For example, we are encouraged not to drink when you know you will drive. There is no way a drunk person sitting behind the wheel will be able to control himself not to talk about his ability to control the vehicle.

Traffic Violations: Violations of traffic rules such as over speeding, careless driving and violating traffic lights can earn you traffic ticket. The impact of traffic ticket in your car insurance rate can last for three years. Therefore, it is safer and better not to earn traffic ticket at all. If you don’t want to earn traffic ticket, wisdom demands that you drive safely and ensure that you obey the traffic rule.

In conclusion, if you find out that your car insurance rate may likely go up, it may be a good time to shop around for cheap quotes again. If you just stick to one insurance company, you may not know that you can actually enjoy cheaper car insurance rate somewhere.

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