5 Surprising Things That Can Increase Car Insurance Premiums

There are many things that can raise your car insurance premiums, such as being involved in a car accident or receiving a speeding ticket. However, there are many other little known factors that can increase your premiums, as well. Here are five factors that may just surprise you:

  1. Car's Horsepower:  Many people believe that having a sports car versus a really basic vehicle will cost more to insure. However, even if you buy a cheaper, basic car that is a six-cylinder instead of a four-cylinder, it will be more expensive to insure. Buying a four-cylinder is much more affordable in the end. 
  2. Education and Occupation:  It has been found that those who have a higher education make fewer claims than others. Also, if you are a teacher or even a lawyer, you are usually offered a discount just based on these occupation titles alone. 
  3. Zip Code: Another factor could be your zip code. Some towns are more expensive to have car insurance through than others. This is because studies have been done to determine which zip codes make more claims per year than others. Towns with higher claim levels usually charge more for auto insurance premiums. 
  4. Buying a New Car: Buying a new car typically increases your insurance rates. This is because a new car is more expensive, which means that should the car need to be totaled in the future, the car insurance company is going to have to pay more. However, there are many safety features that your newer car comes equipped with that your older car didn't have that can at least provide you with a small discount.
  5. Not Setting Up Automatic Payments: By setting up automatic payments with your car insurance company, you often receive a discount. This is because auto insurance companies don't want to have to deal with customers paying their insurance late. Automatic payments guarantee that they are going to receive their money on time and you will receive a great discount. 
  6. Car Insurance History: Many people believe that they can get away with avoiding payments with one insurance company or making multiple late payments and then switching car insurance companies essentially to start over. However, this poor car insurance history you have won't be erased that easily, and when you sign up for new insurance, it is likely to keep premiums high. 

By knowing these things that can raise your car insurance premiums, you can be sure that you know what you can do to avoid them altogether. For more information, contact a business such as United Security Agency.