Things that Will Drive Your Auto Insurance Cost Up: The Top Ten (or More)

Here are some things that will drive your car insurance costs up:

1. Getting moving violations such as speeding tickets or failing to stop at a stop sign or running through a red light. Once you receive two or three you will see a dramatic increase in your insurance. These violations stay on your driving record for 3 years and I have heard that some insurance companies will review or process information as far back as 4 or 5 years. The company you decide to go with will probably let you know.

2. Having accidents and then processing the claim through your insurance company. Of course if your insurance company does not know about the accident then it won't affect your car insurance.

3. The neighborhood you live in will drive your insurance costs up. If you live in a neighborhood that is deemed less than desirable by insurance companies it will cost you more. If they determine that your neighborhood has more than it's share of burglaries and auto thefts it will factor into you receiving higher insurance costs.

4. Your age will also determine your insurance costs. The younger you are the more you will pay. If you are 25 and under you will really seem some higher insurance costs for your auto.

5. Not taking driving courses that are offered.

6. The type of auto you drive. Sports cars have a tendency to make you pay more in auto insurance.

7. Men will pay more for auto insurance than women because men are more aggressive drivers.

8. Your luxury auto will cost you more in insurance.

9. Only having one person on your policy cost you more. When you add another individual to your policy with another auto it will decrease your auto insurance.

10. Not having safety features installed in your car like a burglar alarm and air bags.

11. Adding someone to your car insurance as a driver that has a less than perfect driving record.

These will definitely drive your insurance up. I added number 11 as a bonus.

So be careful and make sure you shop around the rates for the best insurance companies. That's another thing not shopping around to get the best rates will drive your insurance costs up. If you let an insurance company tack on the highest coverage that will increase your cost as well. For example you have the option of selecting a deductible of $250 versus $1,000. I always select $1,000 as my deductible. Now a deductible is the portion of the expense you are liable for in case of an accident. You must pay your deductible before the insurance company will pay their portion. With a $1,000 deductible you are assuming more of the risk therefore your insurance premium will be lower. With a $250 deductible you are assuming less of the risk and consequently your insurance premium will be higher.

However if you have an accident and your deductible is $1,000 you had better be prepared to pay that deductible. You don't want to be in a position that leaves you scratching and scraping trying to come up with that deductible.