Your Auto Insurance and Rate Changes

Back To Articles Your Auto Insurance and Rate Changes
Preferred Mutual would like to remind you that you can take us with you! Download our MYPreferred Mobile app today from the App Store or Google Play today!

At Preferred Mutual, our policyholders receive transparent and honest communication regarding why your auto insurance rate may change. Here are five of the most common reasons!

It may seem like insurance carriers just arbitrarily raise and lower the price of your auto insurance, but there are real reasons the price fluctuates! Here are the most common reasons:

  1. Driving record: At-risk drivers are defined as insureds who have had incidents on record such as accidents (regardless of fault), speeding violations, reckless driving, and driving while intoxicated or under the influence. Those incidents may influence your premium payment, but as time goes on, past claims on your record will decrease if you keep losses to a minimum!
  2. Credit score: We don’t love it, but your credit score impacts your personal insurance score. In combination with other risk factors, insurance companies use your credit score to help determine your home and auto rates as a larger commitment to covering more people and promoting equitable rates for every customer.
  3. How often you drive: It’s a simple concept: the more you drive, the more opportunity there is to get into an accident. Your insurance agent will ask you of your lifestyle when quoting with insurance companies because you may actually be eligible for lower rates if you’re not driving far and long every day!
  4. The type of car you drive: Well, the type of car you drive will absolutely influence your premium. New cars cost more to repair after an accident, and they are also at higher risk of break-ins or theft. Your dream car is still absolutely in your reach, but be sure to speak to your agent about how that car might change your rate. Keep in mind luxury cars aren’t the only ones that are at a high-risk of theft. Thieves target cars with high-demand parts, too.
  5. Adding a driver to your policy: In addition to all of the factors above, an additional driver on your policy will ultimately impact your rate. Adding a teenager, for instance, can generally bump up your rate due to the high-risk associated with new drivers.

Worried about insurance your teen driver? We offer Good Student Discounts, multicar discounts, and discounts when you bundle your auto and home insurance with Preferred Mutual!

Preferred Mutual would like to remind you that you can take us with you! Download our MYPreferred Mobile app today from the App Store or Google Play today!

This information is intended for educational purposes only and is not legal advice and/or an authoritative guide.

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