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Reasons Why Your Car Insurance Rates Changed

Here are some of the factors that might have affected your auto insurance.Reasons Why Your Car Insurance Rates Changed

If you noticed that your auto insurance premiums have changed, there are several different explanations for this rate adjustment.  It’s important to keep in mind that auto insurance companies calculate your premiums based on your risk and how likely they think you are to file a claim.  While getting into an accident is one factor that can affect your rates, there are many other factors that can influence your insurance premiums.  Here are just a few.

Personal Factors

There are certain individual factors that can affect your insurance, such as:

  • Your Car – More expensive cars will require more expensive repairs; this is turn will affect your insurance rates.
  • Your Coverage – Changes in your coverage will result in changes to your insurance rates.
  • Personal Characteristics – Individual circumstances such as getting married, moving, or even turning a year older can influence your auto insurance premiums.

Other Factors

In addition to your personal factors, your insurance rates are also based on factors that are outside of your control.  For instance:

  • Newer Cars – Getting into an accident with a brand-new car will result in more expensive repairs. With more new cars on the street, your chances of getting into an accident with one increase.  This increased risk translates into higher insurance premiums.
  • Gas Prices – When gas pries drop, people tend to drive more, which increases their chances of getting into an auto accident. Again, this increased risk translates into higher insurance rates.
  • Medical Expenses – As the cost of medical treatments rise, so do your auto insurance premiums. This rate increase is to ensure that you have enough coverage to address the medical expenses associated with an accident.

These are some of the reasons why your auto insurance premiums might have changed.  Do you have more questions regarding your auto coverage?  Don’t hesitate to contact the experts at Bell Black Insurance.  We serve all insurance needs for those in Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming.