Car insurance premiums can go up due to many factors. Rates don’t go up for no reason, however. There is always a reason for car insurance changes, but some influences are out of your control.
Population
Changes in the population in your area can be a large factor when it comes to car insurance. Insurance agencies base car insurance premiums primarily based on the risk of clients filing a claim. When a driver files a claim, an insurance company must pay compensation. A larger population means more drivers on the road. This, in turn, raises the possibility of an accident.
Age
Your age and gender also have an effect on car insurance. Younger drivers pay higher premiums, as they’re more likely to be inexperienced. Males are also statistically more likely to engage in dangerous driving activity, such as aggressive driving behavior. Car insurance typically goes down when the driver hits 25 years of age. Age-related increases don’t generally appear again until the driver reaches their 60s or 70s. 
Other Drivers
No matter how carefully you drive or how much you take care of your vehicle, it’s impossible to control other drivers on or off the road. In some areas, drivers often drive uninsured. Uninsured drivers drive up car insurance premiums, as accidents involving a driver without insurance require more compensation. In states where the at-fault driver must cover damages, an uninsured motorist can’t compensate for damages. This leaves the other driver to file a claim under their uninsured/underinsured motorist coverage.
Areas with historically high rates of wrecks, uninsured drivers and car insurance claims typically charge more for car insurance.
Crime Rate
Car insurance also covers such criminal acts as theft and vandalism of the insured vehicle. Areas with a higher crime rate may mean higher car insurance premiums. This also applies to certain vehicles. Some vehicles are more likely to be stolen, meaning they can be more expensive to insure. It’s recommended that drivers choose a vehicle with a high safety rating and anti-theft system.
Other Factors that Affect Car Insurance
While there are plenty of factors that you can’t control, there are also influences on your car insurance rates that you can impact to either raise or lower your premiums.
Credit Score
Insurance agencies view your credit score of how reliable you are in paying premiums on time. You can build your credit score by:
- Paying off debts (such as student loans)
- Paying off credit cards
- Scheduling auto-draft for bills to avoid missing payments
Driving Record
A person’s driving record has a huge influence on the cost of car insurance rates. A single DUI can raise your rates by 80 percent or more. To prevent higher rates, be sure to drive defensively, follow traffic laws and avoid distracted driving. Food and phones are the two biggest reasons for distracted driving, so don’t eat or check your phone while operating a vehicle.
Value of the Vehicle
As described before, the safety measures of your vehicle can affect its insurance rates. But so can other aspects. Expensive vehicles and vehicles modified for speed, such as sports cars, cost more to insure. It’s recommended that drivers choose a lower-value vehicle with a high safety rating.
Discounts
Drivers often qualify for discounts they don’t realize. Ask your insurance agent about discounts available to you, such as:
- Senior discounts
- Military discounts
- Mature driver discounts
- Good student discounts
- Multi-car discounts
- Bundling your home and auto
- New client discounts
- Loyalty discounts
Car insurance doesn’t have to be expensive. Although some part of the price may be out of your control, it’s still important to compare prices and find ways to save money.