Understanding Auto Insurance Rate Increase Claims

You have probably seen some news reports about the NC auto insurance rate increase that took effect July 1st. If you are a North Carolina resident, you are probably wondering what this means for you. The news reports indicate that insurance rates will be going up in most or all parts of the state immediately. If you currently have an auto insurance policy, you should review it carefully before it expires. You might want to consider changing companies if your current company is not offering you a better rate.

It is normal for rates to change from year to year, and this cycle has already begun in North Carolina. Auto insurance rates in North Carolina are based on many factors. Some of those factors are historical and what has happened in the past is likely to happen again. However, some of the factors that can affect your rates are more recent. Let's examine a few of those more recent changes.

One factor that can increase your insurance rate is an accident. If you are involved in an accident that wasn't your fault, your rates are likely to go up. This is regardless of whether the accident was your fault or not. Even if californiacheapcarinsurance.net was your fault, you could still expect your rates to go up if it was considered a "no fault" accident.

What factors go into determining what your auto insurance rate will be? There are several factors that have been determined to be much more important than others in recent years. Many drivers would like to know what their rate will be for a second accident. Statistics indicate that many drivers would receive a hefty discount if they were in an accident that they were responsible for, and there are incentives to keep safe drivers on your policy.

Statistics also indicate that most drivers would like to drive a safe vehicle. A car with a lot of safety features will cost less to insure. This includes airbags, anti lock brakes, and other safety devices that reduce the chance of an accident occurring. There are also discounts based on the age of the driver, the distance driven per year, and the type of car insured. Drivers can qualify for multiple policies if they have more than one vehicle insured through the same company.

Your driving record is also part of what determines how much you will pay for your NC auto insurance rate. If you have had several accidents and tickets previously, you are more likely to have higher insurance premiums. If you have moved recently, you may have difficulty qualifying for a better rate. In addition, if you have made bad choices in the area of where you live, your chances of having to deal with an insurance company who perceives you as a high risk client will also influence your rate. Some people make poor choices regarding where they live, and this will have a negative impact on their auto insurance rates. For instance, living in an area where crime is high will have an adverse affect on your rate.

Your choice of transportation may also cause a NC auto insurance rate increase. If you drive a vehicle that is expensive, or if you travel long distances every day, you are more likely to incur expenses. If you are in an accident or are involved in a traffic mishap, the costs associated with damages and injuries are assessed against you. If you are unlucky enough to have a serious accident, you could end up paying hundreds of thousands of dollars to repair or replace your vehicle. The costs can totally eat up your savings, and if you have invested in a good car insurance policy, you can afford to handle this type of financial burden.

As you can see, there are many reasons that can cause an NC auto insurance rate increase. It is important that you are aware of all of the available options if you are considering changing carriers. Insurance premiums can be difficult to understand, but knowing what they are and why they change can help you to better budget for them. Be patient if you have to deal with an NC auto insurance rate increase, as it will pass. You should also know when to try to save money, and when to go with your current provider.