Why Did My Insurance Premium Increase When I Haven’t Had a Claim With My Insurance Carrier?

Opening your insurance renewal packet can be a scary thing because even if you haven’t made a claim, your rates could still increase. This is because your insurance carrier uses a wide range of factors to set rates. In addition to a minor increase in your premium due to inflation and cost of living, here are some of the other most common reasons why your premium may have gone up when you renewed your policy.

Traffic Ticket

Your insurance carrier has access to driving records in your state and use your history to set rates. If you have received a traffic ticket for speeding or another similar infraction, the ticket could cause your premium to increase. In fact, a traffic ticket can increase your rates even more than a claim, particularly if you weren’t deemed at fault in the claim.

Lower Credit Score

Some states allow your insurance carrier to take your credit score into consideration when setting your insurance premium. In this situation, if your credit score drops, you could find yourself paying more for your home or auto insurance. Therefore, be attentive to paying your credit-related bills on time every month and keeping your balances on credit cards low with respect to your credit limits.

Driving Different Vehicle

The car you drive has a big impact on the rates you pay for insurance. You’ll likely see your premium for comprehensive and collision coverage go up if you switch to a newer, more expensive vehicle or one that is statistically more likely to be stolen. Your liability rates depend more on the extent of the damage that vehicle most often causes in an accident and the statistics on how often that particular vehicle is involved in accidents.

Moved to New Location

Insurance premiums depend largely on where you live, both because of state laws and because of statistics on the cost of auto accidents in that area. For example, you’ll likely see your rates go up if you move from a rural area to a densely populated area because there are more vehicles on the road, and therefore, you’re more likely to get into an accident with one of them. Comprehensive coverage for vehicles also depends on theft and vandalism rates in your area and the type of parking you have available.

Reasons Affecting Car Insurance Premium

  • Reasons Affecting Car InsuranceEducation Qualifications :
    While education may not make one a better or safer driver, it says a lot about what kind of person the applicant is. Education Qualifications and employment directly influence income, income affects lifestyle and lifestyle is a very important consideration for car insurance companies. Not only does lifestyle showcase the scale of living, it also influences the sort of money at one’s disposal. The kind of car or vehicle to be insured is one of the most important factors that influence how much you pay as premium. The costlier the vehicle, the more the car insurance will cost as the cost to repair a high end vehicle is a lot.
  • Credit details :
    The relationship one has with the bank says a lot about the person. The insurance company may ask to see bank documents. However, most of the time, the New Jersey car insurance company will run a background check on a person’s credit history. While most of these details may provide tangential information, not directly saying anything about a person’s character or driving technique, they do count to create an overall picture of the applicant. It might make some sense to manipulate your credit rating and maintain a decent credit history profile, considering this detail is scrutinized by insurance companies.
  • Use of the Vehicle :
    This is important to note. It should be obvious that the more a vehicle is used, the higher the chances of meeting with an accident. Even though a person may lead a high flying lifestyle and need to travel distances to work and back, he or she may have limited use for the vehicle. Several New Jersey car insurance companies provide transport to their officers. So a person possessing an expensive car may have one because he or she has the means to but may not get much use out of it. The insurance company may charge a lower premium in such cases and provide a policy that has limited coverage.

Underwriting guidelines

  • Underwriting guidelinesThe age of the home: Many people do not insure their house if its more than 25 years old. Complete with pre-inspection check before you are granted with the coverage.
  • The age of the roof, plumbing, electrical wiring, etc. : If your house is old, your home insurance company will not know when you have replaced or upgraded your roofing, plumbing items. Before you are granted with the coverage, inspection is required for all the items. You should produce documented proof to home insurance company to show that the items have been replaced.
  • The location of the home : If your home is located in a very risky area then many of the insurers will not insure. If you are located in a wind pool area, insurers will not cover for wind.
  • The occupancy of the home :
    1. If somebody else other than owner is staying in your place or if the house is vacant, insurers will not insure it.
    2. You need to ask for renters policy if a renter is shopping.
    3. Landlords package policy can be purchased if the owner of the house is shopping and if he is planning to rent the house.
    4. If your house is vacant and the owner is planning to buy the policy, then he can ask the company to write for dwelling policy.
  • Animals on the premises: If your house is located on a farmland with animals many insurers may not insure the house. If you are having many breeds of dogs then the insurer might deny to give the coverage to the owner.
  • Claims experience of the applicant: Claims history will be considered by all insurance companies.
  • Credit history of the applicant: Most insurance companies consider the credit history and depending upon that, your insurance premium will increase or decrease.

Avail Cheap Insurance in A Smart Way

Avail Cheap yet Best InsuranceThe car insurance premium in an average varies every year and this does not include the deductible when u have to file a claim. When we look at the economy today, many of us find it very difficult to keep up with such bills. So we have to find the right insurance company to get the lower premiums and best discounts.

Considering The Factors

In any car insurance application there are few criteria which will be considered at the time of evaluating. Even though few factors  might affect your car insurance premium, they may not have much power over. Female drivers have advantage as they will have low car insurance premiums than the men drivers so, gender will also have an effect on your premium. And even if you are a senior driver you can have less premium than the teen drivers. Credit history is one main thing which most of the insurance companies look for. So, be sure you have a clean and good credit history which will help you to get the best premium rates. At any point of time they will be reviewing your credit score and see if have gone through any driving classes which can again be helpful for you to get cheaper premium.

The insurance companies also evaluate the model and make for the car they will be insuring. In case if you are driving a luxury car, then you will have to pay high premium. The reason is parts of luxury cars will be very expensive and repair costs thousands of dollars and also cars which are expensive are more prone to theft. In the mean time if you have an old car, your premiums will be cheaper as you can get the car parts very easily. Another important factor that affects your car insurance premium is the car mileage. The premium will be high if you drive for more distance. If you drive almost all the time, the level of risk for car accidents is high but if you drive less, then the risk levels will slightly be reduced. So, try to use your car less if you want cheap car insurance rates.

Age Can Benefit Your Insurance!

Avail Those Senior DiscountsSenior drivers can avail cheaper car insurance for various reasons than you can even think off. Individuals who airs the utmost risk of being tangled in an accident are of great advantage as most of the auto insurance providers usually offer discounts and low insurance premium rates. Here are few points to consider in lowering insurance premium for senior drivers.

Importance of Slow Driving and Low Mileage

Most of the seniors drive much less than the middle aged professionals who commute daily to work so they are suitable for auto insurance discounts. Seniors can even go for insurance companies’ offers involving up to 25% discount for those who allow the installation of special gadgets in the car to detect mileage and driving patterns. Moreover, owning years of experience seniors are known to drive more carefully. Seniors are qualified for auto insurance discounts even by the absence of any traffic violations on their driving record for more than 3 years.

Conflate Insurance with Other Policies

A lot of seniors are likely to have a house insurance or health insurance for sure. Combining these policies with their auto insurance policy with that of their children or wife, will allow seniors to get ample discounts. When you combine several policies you increase the business for the insurance provider and hence become a preferred customer.

Driving Courses for 55+

Seniors can easily attempt and get certification from 55+ driving courses offered by driving schools. Taking these courses is very easy. Moreover, it allows seniors not only to brush up on the fundamentals of driving safe but also claim for discounts from the auto insurance providers. There are certification courses that also teach seniors extensively about various traffic signals thus helping them to avoid accidents and neutralize the slowness in reflexes that sets in due to dotage..

Credit History to Lower Premium

Credit history is one of the best reasons why seniors can expect lower auto insurance premiums. Given that most seniors are very careful about paying their bills on time and have a long credit history, their credit score would be most likely, impressive. A better credit score always gives the impression that the individual will not only pay the premiums on time, but will also be more mature, and controlled and less reckless on the roads. This will also mean a lower risk of accidents and claims.

Credit Scores Versus Insurance

Impact on Your InsuranceCredit history of any consumer is decided by reviewing his insurance credit score. A model of well tested and developed systems may perform this inquiry and gets the information like history of payment of bills, or if you have a bankruptcy, if the agents have any bill collection, or if you have any exceptional debts, and length of credit history you have.

Understanding Credit Scores

The best and accurate price will be achievable by the insurance companies to your policy with the help of your insurance scores. According to independent research and extensive industry, the low insurance scores will have claims which the insurer needs to pay and these are found out by the credit history patterns. Insurance scores and the underwriting factors are used in the same way.

For instance, high scores are because of the low credit card balance below the limit and payments on time. On the other side, you will have the lower scores if you have a credit history which reaches out the limits of your credit and late submitting of payments, your credit score will have a negative impact. The income of a person, gender, race, religion, geographic location, marital status will not be considered for your insurance score. The only thing it evaluate is credit history. Always make sure that all your bills are paid on time and this will help you to manage your credit history. Maintaining a good credit history and to set up a source of credit will always help you in financial planning. It is very simple in maintaining a clean credit history.

Fix Your Credit History

Never drop your coverage. It is necessary to carry minimum coverage as specified by the state law. You have to pay serious penalties if caught and it will only add to your issues. In case you cannot fix your credit score quickly, you must work to deal with it. To raise your credit score effectively there are some methods which will be really beneficial such as: Paying off a debt or disputing errors on your credit document can provide a speedy fix. You ought to look for an auto insurer that weighs other things over credit when determining your rates. You may also qualify for some discounts that will offset the higher premium. You ought to work to fix your credit. Nice credit makes life a lot simpler in our consumer driven society.