15 Feb 2018
Reasons Why Your Auto Insurance Rates Might Have Changed

Did you auto insurance rates increase this year?  Here are some reasons why this might have happened.

Upon reviewing your auto insurance policy, you might have noticed that your premiums changed.  While these changes might be because of an accident or filed claim, this isn’t always the case.  If you are unsure why your insurance premiums have changed, here are some of the possible reasons why.

Generally, your auto insurance premiums are calculated based on how much your insurance company expects to cover in claims for the year.  This is why your rates increase after you file a claim.  Because you have recently filed a claim, your insurance company is more worried about you filing another one.

Additionally, major life changes can affect how your premium is calculated.  Here are some of the factors that influence your premiums:

  • Your Car – Different makes and models have different repair costs.
  • Your Coverage – Any changes to your coverage, such as adding a new driver to your policy, can cause your premiums to change.
  • Life Changes – Things like getting married, moving, and even your birthday can change your rates.

There are also factors out of your control that will affect your rates.  For instance:

  • Gas Prices – When gas prices are low, people tend to drive more. This increased driving time can increase your chances of an accident.
  • New Cars – With new cars on the road, it means that getting into an accident could result in more expensive repair costs.
  • Medical Costs – As medical costs increase, your auto premiums must increase accordingly to make sure you are covered for injuries sustained during an accident.

These are some of the reasons why your auto insurance premiums might have increased this year.  While these rate increases aren’t ideal, it’s still important to make sure that you have the auto coverage you need to stay safe.  To find the right policy to fit your needs, contact the experts at Patterson & Associates Insurance.  Our dedicated team is ready to get you covered today.