Auto insurance is very important to any driver. This is because, you might be a careful driver but other people might not. Insurance can protect you from such people. There are also people who are not insured but drive recklessly. They can cause accidents that are very expensive. Considering the medical bills and the money you will need to fix the car if damaged, insurance is a God send. This can amount to a lot of money that you might not have at the moment. In Pennsylvania, it is illegal to drive any car that is not insured and it might even land you in jail. Most people have however complained that their premiums keep increasing every year and they do not know why this is so. Here are some of the things that can cause your premiums to rise.
Poor driving record
If you keep driving badly, you will see to it that your premiums rates increase. This is because you will continue to be a risk to the company and so they will need to get more money in case you get involved in a series of accidents. Accidents are expensive. This is especially so if you are the one causing them all the time. The insurance company will have to pay the injured parties as well.
Adding someone in your insurance cover
There are people who add their children in the auto insurance. Teens that do not have their own cars can be included in their parents auto insurance covers if they plan to drive their parents’ cars. This in turn will make the insurance company increase your premiums. Teens and any young driver are also considered a risk in insurance. This is because they do not have experience on the roads. The can forget the rules and even cause accidents. This will then be charged on your insurance company.
Adding more covers in your policy
Since there are many covers, you might initially acquire just the important or mandatory ones. With time, you might feel comfortable enough to add more covers to your policy. When you do this the premiums will also definitely increase.
These are three reasons that may make your premiums to increase. However there are very many other reasons including some that you can’t control, for example, the economy. If the economy is tight, the premiums will go up to ensure that the company gets profits.