3 Things that will Increase your Insurance Premiums

People all across the United States are having financial problems. Some have lost their jobs and can’t find another one, while other ones have had to take a pay cut to keep the job they had. Whatever their situation, nearly everyone feels the need to cut back in every way they can. Since all car owners are required to have car insurance, it pays to be as knowledgeable as possible before you buy a policy. Here are 3 things that will increase your car insurance premium and make you spend more money than necessary.  Do your best to avoid them.

The worst thing you can do is drive carelessly and have traffic tickets or accidents on your driving record. If you are under 25, just one ticket can increase your car insurance premium by 50 percent. If you are over 25, the first ticket may not affect your premiums at all, because not all of the insurance companies check their policy holders’ traffic records on a yearly basis. When you get four points on your driving record, even as an older driver, you can expect a 50 percent increase every year it is on your record.

Believe it or not, a low credit score will increase your car insurance premium. Many people are not aware of this. Car insurance companies always check the credit score of customers before they give them a quote.

This tells them two things they need to know about the potential new customer. They will know whether or not he will pay them on time every month and whether or not he is responsible. No company wants to insure someone who won’t pay his bills on time, unless they make up for it by increasing the person’s premiums. If he has a low credit score, he is considered to be irresponsible in his finances, and insurance companies believe that his irresponsibility will carry over into his driving habits. As a result, they consider him a high risk.

The place where you live can cause your insurance premiums to increase. There are certain areas across the United States where drivers are more prone to have traffic related accidents. As a result, if you live in one of those areas, you become a higher insurance risk, and your premiums are higher. On the other hand, if you live in a small suburb with few traffic accidents, your premiums will go down.

When you begin to shop around for car insurance, learn all you can before you purchase your policy. Keep in mind these 3 things that will increase your insurance premiums, and see what you can do to keep them from affecting the cost of your insurance before you have to purchase a policy. By driving cautiously, you can help keep your insurance down.