7 Things that Can Affect Your Car Insurance Costs
Reader’s Question:
Is it true that my car insurance rates will increase if I modify my vehicle?
Jessie
Indianapolis, IN
Yes, a modified vehicle can affect your car insurance costs. However, how exactly it affects the cost will depend on the type of work done, the parts used, and if it has affected the market value of your vehicle. It’s possible for your rates to go higher if extensive (and expensive) modifications have been done. Here are six other things that can influence your car insurance costs:
1. Your Credit Score - Good credit means you’re a responsible person and tend to be a safer driver. The safer you are while on the road the less car insurance rates you’re charged.
2. Your Driving History – This is probably the biggest factor that can affect your car insurance costs. Car accidents and even minor, repeated, traffic violations can have a big impact on your rates.
3. Number of Claims You File – If you file claims too much, your insurer may think that you’re a riskier driver. The more risk you represent the bigger premiums you’ll pay.
4. Discounts You’re Eligible for – Knowing about discounts you’re eligible for is a great way to reduce your insurance costs. Be proactive; always ask your insurer about discount options
5. The Amount of Your Deductible – A higher deductible would lead to lower premiums. Those who choose to minimize their deductible price could actually spend more money in the long run.
6. If You Shop Around for Rates – There are many websites today (like this one) where you can get an instant car insurance quote and be able to compare the best deals coming from many insurers. This is an excellent way to spot a great deal.
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