There are a lot of factors that can affect your car insurance rates. Here are some stats and facts to keep you informed about when - and why - your rates might change. Because understanding how things work is part of building safe driving habits and being prepared for an emergency.
It's pretty simple: the more you drive, the more opportunity there is to get in an accident. Let your insurance company know if your lifestyle changes and you're driving less, because you may be eligible for lower rates.1
Luxury cars aren't the only ones that are at a high-risk of theft. Thieves target cars with high-demand parts. Some of the most commonly stolen cars are Honda Accords and Civics, Ford Fusions and F-150s, and Nissan Altimas.2
Certain areas that are more heavily affected by weather and other factors tend to produce more claims, causing home insurance rates to be higher. For example, you may pay higher premiums if you live in a neighborhood prone to brush fires or mud slides.
When buying a new car, look for vehicles with high ratings for driver safety and passenger protection. Cars with anti-theft devices and security systems may be eligible for discounts as well.3
Are you an at-risk driver? Incidents such as accidents (even if you weren't at fault), speeding violations, reckless driving, and driving while intoxicated can all cause your premiums to spike.
Generally, a new car costs more to repair after an accident. New cars are also at a higher risk of break-ins or theft. So if you're thinking about buying that dream car you've always wanted, talk to your insurance company about how your rates will be affected.
Teen drivers get in more accidents than any other age group, which means your car insurance rates will likely increase when adding a teen to your existing policy. Maintaining good grades, taking defensive driving courses, and increasing your deductible can lower these rates.4