Things that can affect your auto insurance premium

There are many factors that affect your auto insurance premium. Depending on the circumstances, your monthly premium could go up or down. Here are some situations that may affect the rate you pay for your auto insurance.

  • If you add a new car to your policy, your rate will definitely go up. Even though newer vehicles come with improved theft protections and other improvements, the price you pay for the vehicle will influence the rate you pay for your auto insurance.
  • Newer vehicles are made of more fuel efficient lighter material such as aluminum and if you get into an accident they are somewhat hard to repair compared to steel that were used in the past. The increased repair cost will result in higher insurance premium.
  • If you had a teenage driver under your policy you may have noticed that your premium went way high when you added your child. If your child goes away to college, you can drop the coverage which will result in your premium going down.
  • Certain other conditions may result in your premium either going up or down. They include the area you keep your vehicle, amount of driving of your vehicle, and the age of your driver’s license.