Factors That Increase Your Insurance Rate

December 16th, 2018 by

Man researching car insurance on a smartphone

Paying your insurance bill every month is a pain, but it’s necessary. The one thing that makes insurance more of a pain is getting an unexpected rate hike. But what causes insurance rates to go up? You might be surprised by the kind of factors involved. Today in the Thompson Sales blog, we’ll talk about some things that might increase your insurance premium. 

How Often You Drive

The more miles you drive, the more likely you are to get in an accident. That’s not a comment on your driving skills, it’s just statistically true. If you drive a higher number of miles per year, your insurance will be a little higher than someone who just uses their car to go to work and the grocery store.

Your Vehicle

There are several things about your vehicle that can raise your insurance rate. Sports cars, for example, usually have higher insurance rates than a simple sedan. That’s because they’re more expensive, faster, so are deemed a higher risk for reckless driving and accidents. They’re also more likely to be stolen, which is also a factor that’s considered.

Your Location

Insurance companies will consider your location when determining your premium. Factors such as crime rates and population play a part in determining how likely it is that your car will be damaged. If you’re living in a large city with lots of traffic, your premium will probably be higher than someone who lives in a small town.

Your Driving

This one is a little more obvious, but your driving record is definitely a big factor when determining what your insurance premium will be. If you’re in an at-fault accident or if you get tickets, your insurance rate will likely go up. Accidents are considered by insurance companies for anywhere from three to five years, depending on the company. 

Credit Score

You may not realize it, but your credit score actually plays a part in your insurance premium. If you have a low credit score, your insurance premium might be higher. This is typically only a concern when you’re choosing an insurance company, as they’re unlikely to check it while you’re actually on their insurance.

Choose Thompson Sales for Your Automotive Needs

If you’re in the market for a new or used vehicle, choose Thompson Sales. We have a wide selection and unbeatable customer service. We’re happy to help you find the perfect vehicle for your needs. We also have a service department, so make sure to come to us if you need maintenance or a repair. Contact us today for more information or come visit our lot and see what we have for yourself!

Posted in Financial