Insurance companies benefit when drivers don't have accidents and don't make claims. Conversely, they lose money when their customers have accidents and make claims. The insurance company wants to rate a driver as accurately as possible so they can correctly predict your driving patterns and how likely it is you will make a claim. If you are a higher risk for the insurance company, they will charge you more premium.
The following are reasons you could be charged more for your auto insurance:
- Buying a new car - it's worth more than your old car and will cost more to replace. Don't assume higher premiums are only associated with sports cars. If the new vehicle is more likely to be a stolen model, you could be getting charged more!
- Commuting Long Distances - The risk is greater for the insurance company that you have an accident if you are on the road more frequently, especially during rush hour traffic!
- Moving - Risk is determined by the zip code you live in and city residents typically have more people; more people mean more accidents.
- Marriage Status/Age - You are in a higher risk category if you are a younger driver and again when you are a seasoned driver. The same thing is true if you're unmarried.
- Broke up with Your Auto Insurance - If you've gone without insurance in an effort to save money, your premiums will be higher when you seek out insurance again. Insurance goes up even if you've been without insurance for just over a month.
- Law Breakers - if you've gotten a ticket or had an accident, your insurance premiums most likely will be higher. Insurance companies typically check your record whether you are a new or an existing customer. So the cleaner your record the less they will charge you!
Wisconsin residents, insurance rates are going to change based on certain factors, so if you' d like a free review of your current coverage, please contact knowledgebroker Kori Cumley.
