2 Things That Can Cause Your Auto Insurance To Increase
While auto insurance is required in many states to drive a car, you may not understand what determines those insurance premium rates. They can sometimes increase without you fully understanding why it is happening. Here are some reasons that insurance premiums can change over time.
You Start Driving More Miles
When you first got your insurance, you may have given an estimate of how many miles you drive per month. This is based on your average commute to work every day and how often you travel by car. However a change in driving behavior that puts more miles on your car can result in your insurance increasing.
For example, if your home and auto insurance are with the same provider, and you move to a new home, your insurance provider may reevaluate your daily mileage in the form of a longer commute. If you are driving for a rideshare company like Uber or Lyft on the side, that can also significantly increases the amount of miles that you put on your car. You can expect your card insurance premiums to go up as a result.
If you make changes that decrease your mileage, like finding a job that's closer to you or giving up your side gig of being a rideshare driver, let your insurance company know so they can adjust your insurance accordingly.
You Have A Gap In Coverage
Are you going to be going a while without a vehicle? If so, you may think that it is a good idea to cancel your car insurance for that short period of time so that you are not paying for insurance on a vehicle. Unfortunately, this can end up costing you more in the end. Insurance providers view coverage gaps as more risky behavior, and actually reward long term insurance holders with cheaper premiums.
If you are going without a car, ask your insurance agent about what you should do before canceling the policy. They may recommend holding onto the active policy and transferring it to your next car, or lowering your current insurance policy to the bare minimum to minimize the cost between cars. For example, there is a reduced rate policy for car insurance if the car will remain in storage and you have no intentions of driving it, which just covers the car in the event of a fire or natural disaster.
Reach out to a company such as Phillip R Davis Insurance for more information.