Why do New York Car Insurance Carriers Raise my Rates?

There are many reasons why your insurance rates might go up. However, many of these reasons are not clearly explained when you purchase the policy. This means that, if one of the circumstances that would cause to raise your premium happens, your premium will go up without the company that issued the policy explaining the reason to you. Though there is no way to determine all of the potential reasons that your policy premium could go up, because each policy will vary from person to person, you can get a better view of some of the more popular reasons why your policy can raise by understanding the basic stipulations of a policy.

Main Reasons

One of the most common reasons that a policy premium goes up is because you get in an accident that turns out being your fault. If you are the cause of an accident, your policy will go up instantly, often without the company explaining why the policy jumped in price. However, this is usually one of the first possible reasons listed in a policy plan at the time of its creation.

Another one of the more common reasons why your policy might raise is because you get two or more tickets during a specific period of time. Getting multiple tickets during a short period of time causes the insurance agency to believe that you may be a risk for an accident. When this happens, your policy will raise in its monthly premium. The amount of tickets you have will successfully increase the price of your monthly premium. This means that the more tickets you have, the greater your policy premium will raise.

Your car insurance policy can also rise in price if you add one or more drivers to the policy that were not on the policy when you originally purchased it. If you have a child that comes of age and get him or her on your policy, this will cause your monthly premium to rise. In the same way, if you add another vehicle to the policy, your policy will also go up. This is to allow the company to be certain that they will be able to cover the greater likelihood that one of the drivers on the policy will get into an accident.

If you change vehicles on the policies to a newer, more expensive vehicle, your policy rate will also go up. This is to allow the company to properly finance the more expensive car with rates that will allow them not to lose money if the car is in an accident. The policy has to be able to match your premium with the amount a potential repair would be.

Age also plays into vehicle premiums. If you are below 25 years of age, your policy will be a little higher whereas when you get older than 50 years of age, your policy will go up as well. These prices are based on vehicle as well as age, simply based on research that is done on how people drive when they are different ages.

What Raises Policies

Though there are dozens of other potential reasons why an insurance company will raise their rates for your policy, these are the most common. Since all policies vary drastically based on the age of the driver, the type of vehicle being insured as well as based on the type of coverage that you might have, there is no way to simply answer the question "Why do New York City car insurance carriers my rates?" However, understanding some of the more frequently used reasons will help you better understand why insurance carriers raise rates.

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