You probably already know that it’s common for your premium to go up if you’re involved in an auto accident. But there are other reasons your rates may be higher as well. At Broadbent Insurance, Inc., we provide auto insurance in Newark, DE. If you need a new policy or you’re wondering if you are overpaying for your current one, our agents are here for you. Here are seven common reasons for a higher insurance rate.
- Your Car Performed Poorly in Crash Studies – Insurance companies consider cars that sustain more damage in crash safety studies as a higher risk.
- You Rent Instead of Own Your Home – Surprising as it may sound, whether or not you own your home factors into insurance companies’ calculations. Some companies charge renters up to 6% more.
- Your Car Is More Likely to Be Stolen – In-demand models that are attractive to thieves are considered riskier to insure by some companies.
- You Have a Long Work Commute – In the eyes of insurance companies, the more time you spend on the road, the more likely you are to be involved in collisions.
- You Have a Lower Credit Score – Some insurance companies see poor credit as a sign of higher risk on their part.
- You Live in a High-Crime Area – Insurance companies sometimes factor in the environment where the car is kept and will raise rates if there’s a higher likelihood it will be damaged or stolen.
- You Are a Teenage Driver – Since teenage drivers are more likely to be involved in accidents, insurance companies raise their insurance rates.