Why did my auto insurance increase?

Auto Insurance

Auto InsuranceWill unpaid parking tickets or accidents cause your premiums to rise?

Upon receipt of a letter or an invoice that shows that you’ll be paying more for your premiums from now on, it’s natural to ask yourself: why did my auto insurance increase?

The answer can lie in many places, some within your control, and some that had nothing to do with you.

For example, there are times when an insurer will boost all of their rates, so you will simply have been roped into that hike as a whole. However there are other things that may have happened since your last payment, and you might be curious as to whether or not they played a role in the higher price tag.

Will a non-driving related license suspension cause your premiums to rise?

Failure to pay off your parking tickets, to the point where your license has been suspended, can make your premiums increase even though it has nothing to do with something that was done behind the wheel. This is because it is noted on your driving record. Every time you purchase a new car policy or whenever it comes time to be renewed, the insurer will access that information and will notice that your license has been suspended. Each company has its own rules for determining how much it will affect the amount you pay.

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You will likely lose your safe driver discount, at the very minimum, if your license is suspended.

It may be considered a minor violation, but you will no longer have a perfect record, meaning that discount will more than likely be removed. The actual premium itself might also increase along with it, depending on the company and your state.

When the license suspension is the result of a major offense, such as a DUI, will bring about much more significant price hikes.

In the case of an auto accident, your insurer will look to its “surcharge schedule”, which is a premium increase that has been predetermined for your policy, should you be involved in an accident. Make sure to take that schedule into account when you’re shopping for a policy or when it comes time for renewal, as it could make a dramatic difference to the premiums should you ever be in a collision. At least you’ll know the answer to the question why did my auto insurance increase?

 

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