Five Reasons Why Auto Insurance Rates May Go Up

No one likes high cost bills. When it comes to auto insurance, it is disappointing to see larger monthly costs. Below are some reasons your coverage may increase. You can always shop around if you seek to lower the rates. UNO Insurance Agency in Phoenix, Arizona is here to help you compare quotes from differing companies, so contact us today!

Reason 1: You Had an Accident or Ticket

If you have an accident or receive a ticket, then you may get points on your driving record. At that time, you company may increase your rates. If this is a first-time ticket, check if you are eligible for driving school to avoid the points going on your record. If it is a minor accident, consider paying for repairs out of pocket instead of using your insurance to cover costs.

Reason 2: You Bought a New Car

If you got rid of your older car and bought or leased a new car, then your rates will most likely go up. An older car is usually cheaper to insure, especially if it was already paid off. If you leased or financed the new car, then the lender will require you to keep a certain threshold of coverage until you pay back the loans. Consider getting a used car and see if that lessens the increase you will pay.

Reason 3: Your Living Situation Changed

When you get married, you can report the change to your insurance company. In some cases, you may be able to get a family plan with your spouse and save. However, if you have separated and need to get a new plan, then the costs may go up.

Your rates can also change if you move. Certain zip codes and areas are deemed to require more coverage. In addition, if you move from a place where you can garage the car and you now need to park it on the street, you will most likely see an increase. If you live farther from work, your annual mileage may also go up. This can result in a spike in coverage costs.

Reason 4: Age Matters

As you age, you may fall into age brackets considered lower or higher risk to insure. If you have added your teen youth to a plan, then expect the rates to go up. If a driver has less experience, then they are generally perceived to be higher risk (and more expensive) to insure.

Reason 5: Age Matters

As you age, you may fall into age brackets considered lower or higher risk to insure. If you have added your teen youth to a plan, then expect the rates to go up. If a driver has less experience, then they are generally perceived to be higher risk (and more expensive) to insure.

UNO Insurance in Phoenix, AZ is here to help you understand your insurance rates and save—we can even get you a same day quote!