Question

What are the factors that can raise your car insurance premiums?

Several factors can cause your car insurance premiums to increase. Insurance companies use these to assess risk—the higher the risk, the higher the premium.

1. Car insurance for teenagers is expensive since they are high-risk drivers. So, if you add a teen to your coverage, your rates will increase.

2. Your driving record can influence your premium rates. Speeding tickets, or DUIs, can make you look like a high-risk driver. A reckless driving ticket can also trigger a rise in premium.

3. A lower credit score can increase the premium because insurance companies see individuals with poor credit as higher risk. A poor credit score indicates a higher likelihood of filing claims and defaulting on payments.

4. Owning a high performance, luxury or newer car can also raise your premium since any repair to them can be expensive.

5. Even where you live can influence your premium rates. Places with high accident and theft rates can increase premiums since they are high risk.