Why did my insurance go up? Major factors that determine auto premium.

Has there ever been a time where either you look on your dedicated insurance app or when your’e paying your insurance bills that you seem to notice that your premium has skyrocketed. And you suddenly stop to wonder… why and why me? Well turns out your not the only one, in fact, many people go through those same issues. But it may not be, as the conspiracy theorists like to put it, lobbyist insurance carriers out to get you, turns out it’s quite to opposite. In this blog I will break down 5 ways insurance carriers are determining when and why your premium goes up and down.

There are multiple factors that determine when and why your insurance premium will go up and down. According to Insure, the determining factors are as follows:

• Geographical Location
• Age
• Gender
• Marital Status
• Years of Driving Experience

Location
Insurance carriers will most likely start by asking for your ZIP code, which will determine the base rates. They can tell a lot from just your zip code, like for example, the rate at which accidents and insurance claims happen with your ZIP code or even the prevalency of the weather in said ZIP code.

Age
A study that was done by Insure showed that young drivers are statistically shown to drive much more immaturely compared to their older counterparts – 25 and up. In fact, most carriers will drop their insurance premiums when the individual hits 25 years old.

Gender
The premium rates between the genders varies and depends on many things, those being state location and actually age. In their younger years, males are much more likely to have higher premiums than females because they are found to be more aggressive as a novice driver.

Marital Status
According to a study done by the National Institute of Health, they found that single drivers were twice as likely to be in an auto accident when compared to their married counterparts. On the other side, married couples were less likely to be in an accident. So get married folks or you might see your insurance premiums climb.

Driving Experience
It is pretty straightforward as it really just boils down to if your’e an inexperienced driver, your rates with climb exponentially when compared to those who have more experience. Anyone who hasn’t driven a car is automatically a higher risk to car insurance companies, whether your’e 16 or 50 years of age.