You probably expect your auto insurance rates to go up after you receive a speeding ticket or get in an accident. However, your rate can change even if you have an excellent credit score, a spotless driving record, and have never filed a claim. The team at Imperial Agency, an insurance broker located in Garfield, NJ, discusses what can increase your rates.

What Causes Auto Insurance Rates to Rise?

1. Dropping Your Insurance

A lapse in your car insurance indicates that you may be a risktaker to insurance companies. Insurers notice this behavior because it increases the likelihood that you may be involved in an auto accident and raise the rates. Always keep your vehicle insured to prevent paying higher premiums.

2. Moving to a New Area

Car insurance rates can increase if you move, even if your new residence is nearby. Insurance rates fluctuate depending on the zip code you live in. Moving to a crowded city or an area with more crime can trigger an increase.

3. Changing Your Policy

Even making a small change to an auto insurance policy can raise the premium. Adding another vehicle to your policy or including additional coverage such as towing and roadside assistance can increase the rate. Lowering your deductible can also raise what you pay. 

4. Increasing Your Daily Commute

Auto insurance companies consider the number of miles you drive each year when determining a premium. A longer commute raises your risk of getting into an accident, and your rates can be higher as a result.

5. Having a Birthday

Despite years of experience driving, insurers view seniors as riskier than younger drivers. As a result, if you are over 65 years old, you may pay more in auto insurance rates. Premiums generally start to increase at this age because drivers are more likely to sustain severe and expensive injuries from being in an auto accident.

If you’re thinking about changing your coverage, contact the team at Imperial Agency. They strive to match their customers with affordable, quality coverage for their homes and vehicles. Call (973) 546-9567 to speak to an agent. Also visit them online for more information about their insurance agency.