Your auto insurance rates will change throughout the course of your life, and you'll probably see at least a small premium adjustment every time you renew an existing policy or purchase a new one. There are, however, certain events that will trigger particularly substantial changes in your premiums. Here are three events that will significantly impact your auto insurance rates.
1. You Purchase a New Car
The car you drive has a major impact on how much your auto insurance rates are for the year; make and model affect both the risk of injury during an accident and how much your insurance company might need to pay if your car is totaled.
Because your car has a direct and large impact on your auto insurance rates, you can expect to see a premium adjustment anytime you purchase a new car. The adjustment might be moderate if you stay within the same class of car as what you currently drive, but the change can be quite substantial if you change vehicle classes.
For example, upgrading a $10,000 subcompact car to a $12,000 subcompact might not change your premiums too much. If you trade in that $10,000 subcompact for a $45,000 three-row SUV, however, be prepared for much higher auto insurance premiums.
2. You're in an Auto Accident
If you're in an automobile accident, you can expect your auto insurance premiums to go up — especially if the accident is determined to be your fault.
Driving history is one of the major data points that insurance companies use to determine the risk that a particular person poses when they're behind the wheel, and any mark on your driving history will increase your rates. An accident is a particularly significant mark.
3. You Get Married
When you get married, your auto insurance rates may change for two reasons.
First, marital status is another one of the factors that insurance companies look at when they calculate auto insurance premiums. Any change in marital status will alter your premiums, and getting married usually results in lower rates.
Second, you might be able to get a multi-policy discount form an insurance company once your married. Assuming you and your spouse each have a vehicle, insuring both vehicles with the same insurance company will result in a multi-policy discount. This is usually a good percent off of your normal auto insurance premium, and it's a discount you both receive.
For more information, contact an auto insurance provider.