Insurance Premium There is nothing more frustrating than playing by the rules then getting punished anyway. Even though you have been a safe driver, and not had any tickets, your insurance company raises your rates. Even drivers who maintain a clean driving record can get stuck with a rate increases from their insurance companies. If your insurance company has raised your auto insurance premium, the best way to combat the increase is to shop around and compare cheap car insurance rates from multiple companies.

Insurance companies use complicated models to set car insurance rates. There are many aspects that contribute to the premiums drivers pay. First, they evaluate your risk to determine how likely you are to file a claim and then they estimate the likely costs. This is why drivers with tickets and accidents pay higher rates than those who are clean drivers. With a clean driving record there are still factors that can cause your rates to increase. Let’s take a look at some of the factors that may be affecting your rates. First are factors that are specific to your personal situation and may be within your ability to control. The second list is factors that are just part of the industry and something you may not have control over.

Personal Factors

Industry Factors

Insurance Premium 2The bottom line is, because there are so many different variables and ways your premiums can go up from year to year, it’s safe to assume they’ll continue to fluctuate over time. What is important to know is that whatever happens to your insurance rates, it’s not necessarily anything you have done wrong.  Just keep driving safely and maintain a clean driving record and this will keep the increases to a minimum. Understanding what makes an insurance policy increase on renewal puts you in control of your policy, and in a location to negotiate for the best cheap car insurance you can afford.