Even the safest drivers can have questions if their auto insurance rates are high or their rates increase without having a significant claim. Here are some of the factors that may impact your auto insurances rate:
- Driving history—The biggest aspect that affects your rates are how often you’ve gotten into an accident, and how likely carriers think you’ll get into one again.
- Number of drivers—The number of drivers on U.S. roads has increased over the past few years as a result of rising employment rates. This, in turn, leads to more crashes that need to be paid for by insurance, and carriers may choose to transfer this cost to policyholders by raising rates.
- Claim severity—The average cost of an auto claim is increasing because of the rising price of medical care, vehicle repairs and auto parts.
- Uninsured drivers—Auto insurance is usually mandatory in order to protect drivers and their passengers. However, policyholders may need to purchase additional coverage in case an uninsured driver causes an accident.
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