There are many variables that factor into the calculation of an insurance rate. Some of them will be listed in this blog. Any change in one or more of these factors may affect the rate.
Sometimes you go into your insurance company wanting to update your address on your insurance and you come to the surprise that your rate is going up because you now live in a different zip code and it is much more expensive. Also if you have two cars on the policy and you drop the insurance on one you will not be getting the multi vehicle discount anymore.
Another good example is if you are married and separate or get a divorce and remove the person that was your spouse and your status now is single, your insurance will also increase
Coverages: Factors include coverage limits and deductibles.
Driver information: Factors include age, gender, martial status, driver discounts, and accident and violation history. When a driver is added or deleted driver assignment could also be affected.
Discount availability: Depending on the type of policy change, discounts can be added or removed. For example, on a two-vehicle policy, removing one of the vehicles will automatically lead to the loss of multivehicle discount.
Vehicle location: Your insurance company reviews the number of accidents, thefts and vandalism claims that occur within the zip code in which the vehicle is garaged or parked. Research shows that vehicles located in highly populated areas are more likely to experience these types of claims.
Vehicle information: factors include vehicle year, make, model, accuracy of the vehicle identification number (VIN), usage and safety equipment. (e.g., anti theft devices, air bags, ect.)
If you have any questions regarding the topics talked about in this blog please give our office a call 775-853-3388
We know when insurance rates go up it is unfortunate, but here at Capital Insurance Service we have different insurance companies and we will find your the best coverage for the right price!