Woman in home office looking at insurance premium.

What Affects the Cost of Your Car Insurance Premiums?

What goes into premium cost changes for your automotive insurance after a claim, a life event, or a yearly increase? It’s essential to understand the various factors at play, what drives them, and the things you can and cannot control that can cause increases or decreases in the cost of your car insurance premiums. Today, we will look at everything from the top down on situations, life choices, and driving habits so you can make better buying and driving choices when it comes to insurance.

Auto Insurance Factors Outside Your Control

Sometimes, it isn’t anything you do that’ll affect your premiums. Insurance companies are always at the point of balancing costs vs. the number of claims they have. If claims go up—or adjusters predict they will go up—so can premiums. Insurance payouts are tied to the cost of cars, parts, and services, so the premiums are as vulnerable to inflation as those products and services are.

Life Changes That Can Affect Car Insurance

Sometimes, the change in premiums is a side effect to major life choices and changes to your situation or vehicle’s policy. Some examples are:

  • Your Car: What you drive affects your premiums. Things like the age, make, model, safety rating, and the likelihood of theft all factor in.
  • Your Address: Where you live has a large impact. Some zip codes have higher or lower crime and auto accident frequency, which will cost more or less.
  • Who Drives: If you have a partner or child who is added to the policy, you’ll see an increase or decrease if they move on.
  • Coverage: Of course, changing your insurance coverage can also affect costs. It’s important to know what coverage you might need.

Auto Accidents & Safe Driving and Insurance

Obviously, auto accidents and claims can make your insurance rates rise, especially at-fault car accidents and traffic violations. Just as a traffic violation can cause your rates to rise, safe driving can cause them to lower. This can include a certain period without accidents and traffic violations, completing a safe driving class, and using telematics—tracking driving behavior by devices in your car and via phone apps.

At Safeside Insurance, we work with drivers (and homeowners and business owners) to get the best coverage for their needs, including balancing the cost of premiums and deductibles and explaining increases and decreases in cost, coverage, and liabilities. Get an auto insurance quote in minutes and learn why at Safeside, we believe in the right insurance at the right price. Need more help? Contact us directly or call us at (508) 753-8862 to get started!

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Safeside Insurance Agency

Office: (508) 753-8862
Fax: 508-797-3564
Email: info@safesideagency.com

59 Green Street
Worcester, MA 01604

Business Hours
Mon - Thurs: 10:00 AM – 4:00 PM
Friday: 10:00 AM – 2:00 PM
Sat & Sun: Closed

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