Higher insurance rates could be costing you thousands of dollars more for basic annual coverage. But what are the reasons for these high rates? And what can you do to mitigate a rise in costs? Our experts for cheap SR22 insurance take a look at the most common reasons for a rise in auto insurance.
Paying premiums late
When you repeatedly pay you premiums late, your auto insurance company is likely to consider your rates when it comes time for renewal. While most of us have been late on our payments once or twice, paying you insurance late consistently is a pattern that will be recognized by the insurance firm. You’re then likely to find your rates rise significantly and your costs go beyond your budget.
Choosing the wrong payment plan
When you go to pay your auto insurance, you likely have three options: you can either pay for the insurance over the entire year, have the insurance cost come directly out of your account, or pay manually each month. Many make the mistake of choosing the manual payment option. Some companies charge financing fees for those that pay each month and it’s often more affordable, when possible, to pay for the entire year of insurance in one amount.
Filing claims for small amounts
While your insurance company can protect you against significant claims, you may find your rates rise if you file every claim regardless of the cost. In incidents where the cost to fix a vehicle is less than $300, for example, it’s often more cost-effective to simply pay the cash directly to the other driver rather than go through your insurance company. Otherwise, you’ll have an at-fault accident on your record and your rates will rise beyond the cost of the initial repair estimate.
Not shopping around
Whether you’re looking for auto insurance or trying to find cheap SR22 insurance for liability coverage on the road, not shopping around will lead you to select an unsuitable coverage option. Make sure you review the options carefully and choose a plan that provides precise levels of coverage at affordable pricing.