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A premium for auto insurance is the cost you pay for it. What you pay depends on a variety of factors. What are some of these?

Sometimes, what you pay can change due to the actions you take. It is always essential to work closely with your car insurance agent to know when this can happen. It could save you time and money to have a bit of warning about some changes you can control. Others, you cannot. Here’s a closer look at common reasons for auto insurance premium adjustments.

#1: Your Driving Record
The most common reason for a large increase in your premium is a change to your driving record. Reckless driving, such as speeding or causing an accident, is one example. You may have numerous tickets added to your driving record. Were you involved in an accident? This can cause a significant jump in your costs. Sometimes, different infractions will result in different cost changes. Some might prove minimal, others significant.

#2: A Large Claim
Sometimes, claims are not likely to impact your driving record. For example, if you have to file a claim for a small collision, nothing is likely to change. Any changes might prove small, especially if the accident was not your fault. On the other hand, if the vehicle is a loss (or totaled), this may lead to an increase in your premium. Multiple claims in a short period of time are also likely to create a higher cost.

#3: You Adjust Your Coverage
Changing the type or amount of coverage you have plays a role, too. If your car is older and has little value, you may elect to reduce your vehicle coverage and just keep liability insurance. This lowers your premium. But, it also lowers your protection. Adding additional coverage options increases it.

#4: You Bundle Coverage
A good way to reduce your premium cost is by bundling your coverage. You and other drivers in the home move onto one policy. Many cars on one policy often cutsthe overall cost relative to multiple policies. Another way to do so is by bundling home and auto insurance from the same provider.

#5: Inflation
A common, uncontrollable type of premium increase simply relates to inflation. When the cost of insuring a person or an area rises, this creates increases in premiums. This is not something you can control, but you can request a new car insurance quote to look for a discount.

Costs change. However, maintaining a good auto insurance policy is critical. Determine if you have a policy that meets your needs as a primary step.





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