3 Surprising Factors That Could Be Driving Your Car Insurance Premium Up

If you drive a car, the expectation is that you’re paying for car insurance. That can seem like a pretty hefty burden at times though, especially if your premiums are higher than you think they should be. Do you know what’s driving the cost of your premium? Some of the possible reasons might surprise you.

Insurance History

There are some instances where it might make sense to drop your auto insurance policy for a time. Did you know that a lapse in your car insurance coverage could end up costing you though? It doesn’t really matter if you aren’t driving – if insurance companies see you going without coverage, even for a day, you could see the cost of your insurance go up the next time you purchase a policy. A non-owner car insurance policy can help you get around that if you won’t be driving. It’s also important to note that this isn’t something that applies if you’re just switching between insurance companies.

Credit History

Your credit score doesn’t have anything to do with your driving ability, so why does it impact your insurance premiums? The reason is that, statistically speaking, drivers with lower credit scores tend to get into more accidents than those with higher credit scores. Any score below 600 makes you look riskier. Want to raise your credit score? Make regular on-time payments. It’s one of the best ways to boost your credit score over time.

Personal History

Everyone knows your driving history can impact your premium, so that part of your personal history shouldn’t be surprising. You might even know that adding teenage boys to a policy can make your premium jump in a big way. In fact, insurance premiums tend to be higher for anyone under the age of 25 and over the age of 69. If you’re a male, you’re more likely to see higher premiums than your female counterparts. Your marital status can have an impact too. Married individuals tend to have lower premiums than those who are single.

Why does this matter? It all comes down to the perceived risk of insuring you. Not having any insurance or having a poor credit history can make you seem like more of a risk to insure. Younger and older drivers, males, and those who are single, widowed, or divorced tend to be in more accidents, and more severe ones on top of that. If you want to lower your premiums, start looking for ways to make yourself look like less of a risk to insure.