3 Factors that can increase your car insurance rates

At some point, you may have noticed that your car insurance rate could rise if your insurance agent finds more information about your driving history or after an at-fault car accident.

At GUARDIAN INSURANCE AGENCY located in Fairburn, Lagrange and Norcross, we give you some reasons why rates could increase after obtaining a quote, after buying your policy or when your policy is renewed.

1.  During the time of the car insurance quote:

The car insurance quote is an insurer's estimate of your final premium that is based primarily on the information you provide. Generally, there are 2 causes by which the final rate can increase: missing and newly discovered information (like unreported accidents or moving violations).

To determine your actual car insurance rate, insurance companies generally access your MVR (Motor Vehicle Report) and CLUE (Comprehensive Loss Underwriting Exchange) reports, among other things. These reports contain information about your driving history and claim history. If the information in these reports is different from what you reported when you received your quote, it could lead to a premium adjustment.

2. After you buy your car insurance policy:

Generally, your rate may increase in the first month or 2 after you buy your policy if you don't submit any required forms or if your insurer finds an undisclosed accident or incident on your MVR.

In some cases, you may be asked to provide proof of prior insurance to certify that you have had continuous coverage for the time you indicated.

In other cases, your state may require you to submit proof of health insurance in order to maintain lower medical coverage limits. 

3. Your premium may increase on renewal:

There are several factors that can lead to a higher premium in your next policy term.

- State rate plans:

Your insurer and your state's department of insurance have agreed on a new rate plan for all drivers in the state.

- New ZIP Code:

Where you live influences your rate, so if you move to an area with a higher theft or accident risk, your renewal premium could reflect this change.

-Accidents:

If you filed an accident claim that warrants a re-rate, your rate is recalculated based on the recent claim.

- Violations:

If you were convicted of a moving violation, this can cause your rate to be recalculated.

Remember that a car insurance policy may help protect your wallet, your vehicle and even offer peace of mind. Contact us for more Information, At GUARDIAN INSURANCE AGENCY located in Fairburn, Lagrange and Norcross, we can help you choose the coverage that's right for your needs.

For more Information contact us: (706) 884-5006 or (770) 969-5666

Please visit us: www.go-guardian.com