At least once a day we get a call in the office asking, why did my auto insurance premium increase?  There are a number of reasons for the increase in policy premium.  Let’s break it into two categories:  things you can control and things you can not control when it comes to auto insurance costs.  First we can take a look at how you can influence your premium.

Controlling your Auto Premium:

• Avoid moving violations, such as speeding tickets. If you get a speeding ticket your insurance premium will increase.  Insurers see that you are not a careful driver.  The faster you are going the more likely you are to get in an accident and a more serious accident at that.
• Do not commit a traffic crime, such as reckless driving or driving under the influence.  Again premium will definitely increase and your license could be suspended.
• Make your payments on time, better yet go on EFT so you can’t forget!  This will avoid cancellation of your policy.  On-time payments and cancellations are taken into consideration when your premium is determined.
• Avoid a lapse in insurance.  This means continuously keeping auto insurance active.  If you get rid of a car and aren’t buying a new one for a month or two don’t cancel your plates and policy, just reduce the limits to state minimums.
• Always bundle your home and auto with one carrier, you will get a discount.

Things You Can Not Control on Your Auto Premium:

• Rate increases by the insurance company.  Each company sets their own rates, they increase them annually based on the increase cost to repair your car, even if your car is a year older.  The cost of labor and parts to repair a car are continually increasing; therefore, insurers increase their rates.
• How old you are!  If you are a young, inexperienced male driver you will have the highest auto premium (all other things being constant).  As you mature your auto insurance premium will go down.  The decreases in premium are at 3yrs, 6yrs and over 65yrs.
• Accidents.  Like the word means, you didn’t do it on purpose.  Being a safe driver definitely helps in not getting in an accident but sometimes these things are unavoidable.

Auto insurance premiums are a combination of many, many factors, if you can avoid the controllable things then you are off to a good start.  Any questions that you may have on your auto policy please give us a call www.mancuso-nowak.com.