“Why Your Comprehensive Car Insurance Premiums Are Increasing”

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Why Did My Comprehensive Insurance Get More Expensive?

Opening your latest auto insurance bill and seeing a significant increase can be quite a shock. If you haven’t recently received a speeding ticket or been involved in an accident, the hike might be due to your comprehensive auto insurance. This part of your coverage pays for non-collision-related vehicle damage.

Your comprehensive car insurance rate may increase if you file a claim for incidents like fire damage or a broken windshield. According to the U.S. Bureau of Labor Statistics, higher comprehensive coverage costs are a major reason why auto insurance prices have risen by 20.6% over the past year.

Factors Contributing to Higher Comprehensive Insurance Costs

Several factors can lead to an increase in your comprehensive insurance premiums:

• Filing Claims: If you file a claim for incidents covered by comprehensive insurance, such as vandalism or a cracked windshield, your rates may go up.
• High-Risk Areas: Living in areas with high crime rates or severe weather can also result in higher premiums.
• Rising Repair Costs: Insurance companies may raise premiums to cover the increasing costs of vehicle repairs or replacements.

What Does Comprehensive Insurance Cover?

Comprehensive insurance covers damage caused by non-collision incidents, including:

• Vandalism
• Car theft
• Fire or explosion
• Weather-related events like storms, hail, and floods
• Natural disasters such as hurricanes and earthquakes
• Cracked or broken windshields
• Falling objects like trees or telephone poles
• Collisions with animals
• Civil disobedience, including riots

However, comprehensive insurance does not cover general wear and tear, vehicle damage incurred while driving (except for hitting an animal), stolen items from your car, or liability and medical expenses.

Do I Have to Have Comprehensive Insurance?

If you finance your car, your lender likely requires you to carry full coverage, including comprehensive insurance. This ensures that your vehicle can be quickly repaired or replaced in case of an accident or other damage. However, if you own your car outright, comprehensive insurance is optional. Consider factors like the cost of replacement parts, the value of your vehicle, and your budget before deciding to drop this coverage.

How Can I Save Money on Car Insurance?

While comprehensive insurance is generally affordable, there are several ways to lower your car insurance premiums:

• Shop and Compare Providers: Comparing multiple auto insurance providers can help you find the best rates. You can visit insurance company websites or use online marketplaces to collect and compare quotes.
• Increase Your Deductible: Raising your deductible can lower your monthly premiums. However, make sure you can afford the higher out-of-pocket costs if you need to file a claim.
• Remove Unnecessary Coverage: Drop coverage you don’t need, such as roadside assistance if it’s already provided by your credit card issuer or auto club.
• Take Advantage of Discounts: Many insurance carriers offer discounts for safe driving, low mileage, and bundling policies. Ask your provider about any additional discounts you may qualify for.
• Drive the Right Vehicle: Inexpensive economy vehicles with affordable replacement parts usually have lower insurance premiums than luxury vehicles.

Improve Your Credit Score to Potentially Reduce Car Insurance Rates

Improving your credit score can also help lower your car insurance premiums. Most states allow insurers to review your credit-based insurance score when setting rates. Check your credit score and report for free, and take steps to improve it if necessary.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you with all your mortgage requirements.

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