5 Hidden Triggers That Can Increase Your Car Insurance Premiums

When it comes to car insurance coverage, most people know that things like filing a claim or getting a speeding ticket can affect your rates. But what about less obvious causes?

Sometimes even careful drivers can experience fare increases caused by unexpected factors. Here are a few sneaky triggers that can increase your car insurance premiums – and what you can do about them.

1. Credit score drops

Your credit score doesn’t just affect the interest you pay on a loan; insurance companies in most states also use it. A drop in your credit score may indicate that you are more likely to file a claim, which could lead to higher premiums. If your credit score takes a hit, it might be worth checking your policy to see if your rates have increased.

Keep an eye on your credit score to keep your insurance rates low. Avoid late payments and pay off credit card balances every month.

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2. Gaps in your insurance coverage

You may think that gaps in your insurance coverage aren’t a big deal, especially if you don’t drive. However, insurers may view gaps as risky behavior, and it can cost you money. Even if you don’t own or drive a car, consider a no-owner policy to avoid higher rates down the road.

3. A different zip code

Real estate is all about location, location, location, but it also matters for car insurance. Moving to a new area can have a huge impact on your rates, as insurers look at statistics such as crime rates, average accident rates and natural disasters when assessing rates. Moving to a state with no-fault insurance laws, which do not assign fault in an accident, can also cause your rates to increase.

Before you move, consider the insurance costs in your new area. This will help you determine the right location or at least prepare for the increase in rates. You can also shop around for insurance rates to lock in lower premiums.

4. Estimated mileage changes

The RTO (return-to-office) mandate at your workplace may cost more than you think. The amount you drive also affects your insurance rates. If you are returning to the office after years of working from home or are just taking more road trips, your insurer may increase your premium to cover the additional risk.

Make sure you keep your insurance company informed about how much you drive, and shop around if the rates seem high. If you drive less these days, let your insurer know! You may see a slight decrease in your premiums.

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5. Changes in your marital status

Who knew that a ring on your finger could affect your car insurance rates? Your marital status can affect your car insurance premium. Insurers often view married couples as less risky drivers, so if you’ve recently divorced or separated, you may see a spike in your rate.

On the other hand, getting married can lead to a reduction in your premium, especially if you and your partner decide to bundle your policies. Insurance companies typically offer discounts for households with multiple policies or multiple cars, which can reduce costs.

Car insurance premiums are affected by more than you think. Being aware of these hidden triggers can help you avoid unexpected interest rate increases. And remember: the best way to lower your premiums is to shop around and compare rates regularly.