Archive for March, 2011

Top Five Areas That Can Increase Vehicle Insurance Premiums

Saturday, March 12th, 2011
From the loan, gasoline, routine maintenance, and repairs, a vehicle is often an expensive item to own. Another expense is insuring the vehicle, a cost that varies greatly. For example, those with an excellent driving record and that own an older vehicle will usually find the expense relatively small. On the other hand, for those that have a driving history with traffic violations, the monthly cost of auto insurance can easily surpass $200.
Drivers need to know what causes premiums to rise before they can avoid costly premiums. Here are five of the most common contributors to higher premiums:

1. Traffic Violations/Accidents

Although some drivers don’t make the connection between their driving habits and insurance premium rates, the reality is that insurers consider a good driving record as an essential element in obtaining the best auto insurance premiums. Of course, insurers understand most drivers are bound to have a traffic violation or accident at some point. Therefore, most insurers don’t make substantial increases to insurance premiums for a single incident. However, insurers are very likely to make increases when a driver has multiple accidents and/or traffic violations on their driving record. In fact, the insurer may even decline to renew the policy of such a driver. Drivers dropped by an insurance company may find it very difficult to find an affordable policy through a different insurer. On the other hand, drivers with a good record should periodically review their policy to see if they qualify for any premium decreases. (more…)