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Learn why your auto insurance rates might have fluctuated this year.

Did your auto insurance premiums change this year?  If so, you might be wondering what caused this sudden change.  While some rate changes are the result of a recent accident or claim, there are many other factors that affect how your insurance premiums are calculated.  Here are some of the factors that may have caused your auto insurance rates to change this year.

Keep in Mind…

It’s important to understand that your insurance provider calculates your rates based on how much they expect your claims to cost for the year.  This is why you often experience a rate increase following an accident or claim.  Once you’ve gotten into an accident, your insurance company assumes that you are more likely to get into another.

But, there are other factors that affect your rates.  For instance, there are many personal factors that influence your premiums, including:

  • Your Car – The more expensive your car is, the more it will cost to insure.
  • Your Coverage – Changes you make to your coverage will affect how your premiums are calculated.
  • Other Factors – Other personal factors can also influence your auto insurance rates. For instance, getting married, moving, and even getting older can all affect your insurance premiums.

In addition to these personal factors, there are also factors outside your control that can influence your insurance rates.  For instance:

  • New Cars – Getting into an accident with a new car requires expensive repair costs. The more new cars there are on the road, the higher the chance you will get into an accident with one.  This increased risk translates into increased insurance premiums.
  • Gas Prices – When gas prices are low, people tend to drive more. The more you drive, the higher your risk for an accident.  This too will translate into higher insurance rates.
  • Medical Costs – As the costs of medical treatments increase, your insurance premiums must increase as well to ensure that you have enough coverage to address any injuries resulting from an accident.

These are some of the possible reasons why your auto insurance premiums increased this year.  Do you still have questions regarding your coverage?  Then contact the professionals at Fullhart Insurance Agency.  Serving all of Waldport, Reedsport, Sisters, and Tigard, Oregon, and the surrounding areas we serve all your personal and commercial insurance needs.

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