7 Factors That Are Secretly Raising Your Auto Insurance Rates
You get your auto insurance bill, and it’s gone up… again. You’ve been a safe driver, so what gives?
Auto insurance pricing is a complex algorithm. While obvious factors like at-fault accidents and speeding tickets play a role, there are several “secret” factors that can dramatically raise your rates without you even realizing it.
As independent brokers, we can shop your policy across dozens of carriers to minimize these factors. Here are 7 of the biggest ones to watch.
1. Your Credit Score
This is the biggest shock to most people. In most states, insurers use a “credit-based insurance score” to predict how likely you are to file a claim. Statistically, drivers with lower credit scores file more claims. Improving your credit score can directly lower your auto premium.
2. Your Zip Code
Where you park your car at night is a huge rating factor. Insurers track the claim frequency of every zip code. If you live in an area with high rates of theft, vandalism, or accidents (like a dense urban area), you will pay more than someone in a quiet, rural zip code.
3. Your Marital Status
Insurers see married drivers as more stable and less risky. On average, married drivers pay significantly less for auto insurance than single, divorced, or widowed drivers.
4. How You Use Your Car
Do you just “commute” 5 miles to work, or do you use your car for “business” (like rideshare, delivery, or visiting clients)? Using your car for business purposes requires a commercial policy or a special endorsement, which costs more. Failing to disclose this can get your claim denied.
5. Your Vehicle Type
It’s not just about how expensive the car is; it’s about how expensive it is to repair. A high-tech sedan with 10 sensors in the bumper will cost far more to fix after a minor fender-bender than a simple, older truck. Insurers also look at theft rates and safety ratings for your specific make and model.
6. Lapses in Coverage
If you had a gap in your insurance coverage—even for just a few days—you are seen as a higher risk. Insurers reward continuous coverage. Never let your policy lapse, even if you’re between cars.
7. Your Chosen Deductibles
This one is in your control. Your deductible is what you pay out-of-pocket before the insurance kicks in. A “low” deductible of $250 means a “high” premium. Raising your deductible to $1,000 can significantly lower your monthly premium, as you are taking on more of the initial risk.
Find the Savings You Deserve
You can’t change your zip code, but you can change your insurer. As independent brokers, we can instantly compare rates from carriers who are more forgiving of your credit, your zip code, or your vehicle type.
Don’t overpay. Let us find the right coverage for the right price.