Why and When Your Car Insurance Premium Might Go Up
The world of car insurance can be perplexing to individuals who don’t work in the industry. For instance, confusion is often experienced when a person notices their premiums increasing unexpectedly.
Several factors can contribute to the rise in car insurance costs, ranging from personal driving habits to broader economic trends. In the wake of a car accident, talk to a Boca Raton personal injury lawyer to explore why and when car insurance premiums can increase and discuss the specific impacts of collisions on Florida insurance policies.
Reasons Why Car Insurance Premiums Can Increase
Every situation will have its own specific details to review, but if you are wondering why your premiums have gone up it could be related to one or more of the following.
- Accidents and claims. One of the most direct reasons for an increase in car insurance premiums is being involved in an accident that was your fault.
- Traffic violations. Receiving tickets for speeding, running red lights, or other traffic violations can also lead to higher premiums. These infractions suggest risky driving behavior, prompting insurers to raise rates to mitigate potential future claims.
- Driving pattern shifts. Significant changes in how much or where you drive can affect your premiums. So a longer daily commute may lead insurers to charge higher rates because your exposure to potential risks has increased.
- Vehicle changes. Purchasing a new car or upgrading to a more expensive model can boost insurance costs. High-end vehicles typically cost more to repair or replace, influencing the premium calculation.
- Fluctuations in a person’s credit score. In many states, including Florida, insurers use credit scores to help determine premiums. A lower credit score can lead to higher premiums, as it is often associated with a higher risk of filing claims.
- Lapses in coverage. If your car insurance coverage lapses for any reason, you may face higher premiums when you reinstate your policy. Insurers consider continuous coverage a sign of responsibility.
At-Fault Accidents and Legal Support
If you are involved in an accident that was your fault, and your insurance company pays out a claim, you might see an increase in your premiums. The amount will vary based on the severity of the accident and the payout amount. Connecting with a seasoned Boca Raton personal injury lawyer after a collision is an important part of protecting your rights and your financial future.
What is the reason for your higher insurance bill? Accidents, traffic violations, changes in driving patterns, vehicle upgrades, credit score fluctuations, and insurance lapses are all common reasons for premium hikes. The attorneys at Leifer & Ramirez can shine light on your situation as you navigate the complexities of insurance. Schedule your confidential consultation today, call 561-660-9421.
