Factors that Will Increase Auto Insurance Rates

One thing that will definitely increase the premium on your auto insurance rate is if you get a ticket for anything from not stopping at a stop sign to speeding. The only kind of auto ticket that won't increase your insurance rates is a parking ticket. If you do get a ticket, see if you can take a driving class to get the points off your record and reduce the auto insurance rate increase.

Factor that Increases Insurance Rates: Accidents

Likewise, getting in an accident for which you are at fault will also increase your auto insurance rates. This is because the insurance company is forced to pay for damages to the other person's property and any health expenses, and they will raise your rates because they know that you are more likely than another driver to get in a similar accident again.

Factor that Increases Insurance Rates: Making a Claim

If you make a claim in general on your insurance, your rates are likely to increase. Therefore, if you have a small accident for which you are partially at fault and pay for the repairs in full without going through your insurance company, you might be able to save some money because your premiums won't go up.

Factor that Increases Insurance Rates: Buying a New Vehicle

A newer vehicle will usually be more expensive to insure than an older vehicle because the price for its replacement is much higher. When you are looking to buy a new vehicle (even through the cash for clunkers government program), consider the increase in insurance costs for insuring your new car before making the purchase.

Factor that Increases Insurance Rates: Adding a New Driver

Lastly, if you have a child who is getting to the driving age, you should know that adding a teen driver to the family policy will make the rates skyrocket. If your child does not need to drive yet, it might be worth waiting a year or two until you know your teen will be in a situation in which he or she will need to drive.