There is nothing more frustrating to a driver than car insurance prices going up for seemingly no reason. There are many factors that can make the price of car insurance suddenly increase. Some are directly related to your driving habits, while others are a bit beyond the policyholder’s control. Here are some of the most common factors that can lead to an increase in insurance rates that you may not be expecting. 

• Claims history and your longstanding driving record
• Your past history of convictions and other driving violations
• Change in residential ZIP code
• New drivers added to the policy
• A sudden cancellation of home policy, or other policy causing the loss of the multi-policy discount.
• Any removal of a vehicle from the policy, causing the loss of the very effective multi-car policy discount.
• A change in employment that results in the loss of a group or any professional discount.
• Any pre-existing or reoccurring serious medical condition
• Errors that insurance companies make
• Any changes to the payment plan fees or overall structure on the insurance plan.

Every month as you and your family are going through the finances, it can be a surprise when extra bills and/or additional costs come up. These are some of the factors that can raise premiums that are sometimes beyond your control: 

• Liability Claims Paid by the Insurance Company: If the previous year saw an increase in the amount that insurers are paying out after a claim, then adjustments can be made. 
• Collisions in Your Area: Accidents may be due to the change that the traffic flow is experiencing, trouble from weather, or an increase in traffic congestion over time. Insurance providers will adjust their rates based upon these factors, which are unfortunately a common occurrence as urban areas experience growth.
• Increased car thefts in your area impact both new and older cars each time the yearly stolen vehicle statistics are released. Any successful entity providing insurance is going to want to take note of what models are alluring targets, and the addition of anti-theft devices or vehicle engraving can sometimes get a discount to help ease the increases in premium price.
• The Growing Epidemic of the Uninsured: From 2010 to 2015, the number of uninsured drivers on the road increased from 12.3 percent to 13 percent. Insurance providers will pay billions of dollars each year on claims that fall upon the backs of the uninsured, and to offset these costs, insurance companies must make the decision to raise premiums for everyone holding policies. 
• Casualties of Credit Score Changes: Intense calculations are involved when trying to find optimal insurance rates, and most companies use your credit score as a factor when determining insurance rates. As tough as a pill it can be to swallow, lower credit scores can prove to be a greater risk for drivers.
• Rate Increases Under the Guise of General Underwriting Principles: When insurance companies such as our experience losses that exceed our beginning expectations, rates will need to increase to remain profitable. This revolves heavily around the principles that govern insurance even beyond supply and demand: the policy buyer must understand that you are buying into an ability to protect you if anything goes wrong, and if it does so, all of us here at the Alexander Insurance Agency of St. Charles need to be waiting to back you up, settle claims, and be there for you during your time of need. 

At Alexander Insurance, we make sure you are getting the best price and features with your policy. There are many creative and constructive ways to obtain better rates for you! Contact us now for a quote that provides you with the rate you deserve!