It 's common knowledge that auto insurance premiums tend to rise frequently in the United States. Policyholders who haven 't filed recent claims may be confused as to why their car insurance premium has increased when they have not done anything to spark the rise. Several factors play into the way auto insurance premiums are set. Take a look at why auto insurance in Valatie, NY
What Factors Affect Car Insurance Premiums?
Miles logged are increasing
With many people heading back to work, Americans spend a great deal of time on the road. Driving more miles increases a motorists ' likelihood of having an auto accident. If you find yourself driving more, you may find that your auto insurance premiums increase. This is because insurers view drivers who are on the road more often as higher risk of being involved in a collision and filing a claim.
More claim filing is occurring
The percentage of policyholders filing property damage and collision claims continues to increase, and so do the amounts paid out by the insurance companies for property damage liability, collision, and bodily injury claims. The more claims, the higher the premiums tend to rise.
Safety and security factors influence premiums
More and more data is collected about vehicles and their safety. When it comes to comprehensive coverage, theft is a major factor. Data suggests that flashy vehicles are more likely to be stolen. The higher-end the vehicle, the more at risk it is for theft. Sports cars tend to have higher losses, and many drivers for the sole reason of driving them fast. As a result, they are associated with high-speed collisions and injuries as well as theft. Because of this, it can be expected for premiums to rise.
Medical costs are on the up and up
Health insurance premiums and medical costs have been rising at a steady rate across the nation. These increases carry over into the costs of auto insurance. Because insurers incur these higher prices when passengers and drivers are injured, they boost premiums to accommodate for the higher expenses.
Have you recently moved home? Moving into a property in another zip code may impact your premium because the area 's claim history will affect your insurance. If you 're moving into a neighborhood where there is a higher level of crime, you can expect your rate to increase to match the risk. Buying a car will also likely cause a change in the rate, even if you purchased a similar vehicle to the one you used to own. Insurers take the make and model as well as a whole array of other features into account when determining your premium.
A premium might also increase if you decided to change the policy terms such as increasing the amount of coverage or decreasing your deductible.
These are just some reasons why your car insurance premiums may have risen recently. Do you have any questions when it comes to your auto insurance
policy and repairing the scratch on it? Call
the professionals at Kneller Agency
today to get started on quality coverage you can count on.