Why Auto Insurance Rates Go Up

September 12, 2016

We have all been there. Opening your auto insurance renewal invoice with one eye closed and fingers crossed. How much did the rate increase? If you are fortunate, you can breathe a sigh of relief seeing that your rate stayed the same, went up only slightly, or in that “Christmas came early” moment…your rate went down!

WHY?

Why do rates change so much? To answer the question, you must first really understand what in the world your auto insurance actually covers. Visit Galt Insurance to learn more.

One of many driving factors that can impact your auto insurance rate is your credit. Insurers have found a correlation between low credit scores and a higher number of insurance claims as the WSJ article suggests. The good news is that each insurer will weigh the impact of credit differently. This is why it is so important to have an independent agent on your side that represents multiple insurance carriers.

Of course your credit is only a slice of the pie. Here are a few other rating factors to consider:

  • State wide rate increase
  • Tickets, accidents or claims
  • Age of drivers
  • Youthful drivers

Don’t handcuff yourself to one agent with only one option! Let’s find out now what your best rate is from the ten companies we represent and get your quote now!

Keep your eyes on the road!