You already know all the tips and tricks for reducing your auto insurance premiums. But are you hip to the consumer mistakes and oversights that actually send your car insurance rates soaring? There are 10 areas to consider – and look out for.
Neglect to pay your auto insurance premiums. Insurance premiums for drivers whose coverage lapsed — and whose policies were subsequently canceled by insurers — are higher than for those who are ending a policy after starting a new one elsewhere.
Plead guilty to a DUI charge. If you plead guilty – or are found guilty – of DUI, the conviction goes on your driving record. Insurers check these records frequently; a DUI conviction is certain to send your premiums soaring.
Receive one (or more) tickets for moving violations. Speeding or driving through red lights leads to costly tickets. These tickets also lead to points on your driving record. While you may avoid the points for one such violation with the help of a traffic school course, two or more moving violations in a short time span add points. Points increase auto insurance premiums.
Buy a car with a salvaged title. Did you buy a car at auction and learned that it is actually a salvaged vehicle? Finding an insurer that takes on a salvaged car is difficult; those that do charge consumers for the privilege.
Buy an unsafe car. Check the vehicle ratings from the Insurance Institute for Highway Safety. The IIHS usually publishes its top picks for new models, but if you are thinking of buying a used car, do not neglect to check. For example, a Jaguar X-type 2004 to 2008 received a poor rating for rear crash protection; the S-type passed with flying colors.
Rear-end another driver. Unless you can prove that the driver ahead of you was grossly negligent in his decision to suddenly stop, you are on the hook for the responsibility of making all involved parties ‘whole.’ Your premiums go up in the wake of the insurance payout.
Cause a high-cost accident. Hitting a beat-up old Ford truck is cheaper for your insurance company to cover than if you were to rear-end a high-end Lexus, which then careens into your city’s only Aston Martin dealership lot. The subsequent damage estimate is sure to be high, as will be your new premiums.
Move to a risky area. ZIP codes have a lot of influence on your insurance premiums. Some areas are prone to losses due to car thefts, while others seem to attract unsafe drivers.
Pimp your ride. You are a car guy and love to make it go faster, louder and cooler. Specialized parts make your car more valuable – and more expensive to insure. In addition, if your modifications compromise the car’s safety, you also put your insurer at a higher risk of having to pay out.
Make your car safer – but do not tell your agent! You agent does not know that you had the manufacturer retro-fit the car with a burglar alarm or other safety-enhancing gadgetry. This oversight causes you to miss out on savings that are rightfully yours.
Source
The Insurance Institute for Highway Safety: “Rear crash protection – Jaguar”