1. Traffic Violations
Traffic violations are a common reason for auto insurance rates to go up. Some violations are worse than others. Violations are usually classified into two categories minor violations, and major violations.Minor Traffic Violations
- Failure to Yield
- Following too Close
- Improper Backing
- Improper Passing
- Traffic Device / Sign
- Attempted Felonies
- Open Bottle
- Careless Driving
- Drag Racing
- Driving Under Influence
- Fleeing from Police
- Vehicular Homicide
- Passing School Bus
- Driving Under Suspended License
- Wrong Way
If you fight a ticket in court and win, it should not affect your driving record. Traffic school is another option. Some states offer taking a course and passing a test as a way of avoiding an insurance rate increase due to traffic violations.
Another way to avoid an increase in insurance premium is to purchase minor violation forgiveness. Minor violation forgiveness is a newer bells and whistles type coverage offered by a couple of different carriers. Remember though, if you do purchase a product like this, understand all the guidelines so you are not blindsided. Most forgiveness packages only work for minor violations and will only apply to one violation per driver.
4. AgingUnfortunately, getting older does not always make your insurance go down. And in many cases you might actually see your insurance go up once you are over the age of 70. Insurance companies treat elderly drivers almost the same as teen drivers. Senior discounts usually kick in around 50 years old, but if you are over 70 year old your rate will probably start to climb.
6. MovingIt may surprise you location plays a role in your insurance rate. Moving out of state or even moving a much shorter distance could potentially make your insurance go up. Insurance is often based on claims in your area, so if you live in a major metro area it is very possible you will be paying more than if you lived in the suburbs.
Many insurance companies base your insurance premium on your credit score. At this time, California is the only state that prohibits insurance companies from using your credit score. If your credit score plummets, it is a possibility your insurance premium will go up. Check with your insurance agent to see if your credit score plays a part in your insurance rate.
Insurance rates are definitely volatile. Many things go into calculating insurance rates and slight changes can make a big impact on premium. Knowing what will make your insurance go up will put you in a better position to prevent increases. Insurance companies have the ability to recalculate your rate every renewal and sometimes a rate increase has nothing to do with your actions. If you see a substantial rate increase without making a single change to your policy or driving history, it is probably a good time to start shopping around for cheaper insurance.