Auto insurance is an essential component of owning and operating a vehicle, but it can also be a significant expense. One factor that can greatly affect the cost of your auto insurance is your premiums, which can fluctuate based on a variety of factors. In this post, we’ll explore the events that can cause your auto insurance premiums to increase.
One of the most significant factors that can cause your auto insurance premiums to increase is accidents. If you’re involved in an accident, and you’re found to be at fault, your insurance premiums are likely to increase. This is because your insurance company will have to pay out for any damages or injuries that result from the accident. If you have multiple accidents or violations, your premiums may increase even more.
- Traffic Violations
Another event that can cause your auto insurance premiums to increase is traffic violations. If you receive a speeding ticket, reckless driving citation, or any other moving violation, your insurance company may view you as a higher risk driver, and increase your premiums accordingly. This is because these violations increase your risk of being involved in an accident, and therefore make you a riskier driver to insure.
- Claims
If you make a claim on your auto insurance policy, your premiums may increase. This is because insurance companies see you as a higher risk after you’ve made a claim, and they may charge you more to offset that risk. If you have multiple claims, you may be viewed as a high-risk driver, and may be subject to even higher premiums.
- Changes in Your Driving Habits
If you start driving more frequently or longer distances, your insurance company may view you as a higher risk and increase your premiums accordingly. Similarly, if you add a new driver to your policy, such as a teenage driver or a driver with a poor driving record, your premiums may increase.
- Moving to a New Location
If you move to an area with higher crime rates or more accidents, your insurance premiums may increase. This is because your risk of being involved in an accident or having your car stolen is higher in these areas. Insurance companies may also take into account other factors such as the population density, weather, and road conditions in the new location.
- Changes in Your Credit Score
Some insurance companies use credit scores as a factor in determining premiums. If your credit score decreases, your premiums may increase as a result. This is because insurance companies view individuals with lower credit scores as a higher risk, and may charge them more to offset that risk.
In conclusion, there are many events that can cause your auto insurance premiums to increase, including accidents, traffic violations, claims, changes in your driving habits, moving to a new location, and changes in your credit score. By understanding these factors and how they affect your premiums, you can make informed decisions about your insurance coverage and minimize your overall insurance costs.
Can my auto insurance increase if the accident was not my fault in Arizona?
Under A.R.S. § 20-263.01, insurance companies are prohibited from increasing rates or canceling policies based solely on an accident that was not the policyholder’s fault. It’s important to review your auto insurance policy and familiarize yourself with Arizona’s laws and regulations surrounding auto insurance premiums. If you believe your insurance company has improperly increased your premiums or canceled your policy, you can contact the Arizona Department of Insurance or speak with a legal professional for further guidance.