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Major Factors That Can Increase Premium of Auto Insurance in Pennsylvania

While buying auto insurance in Pennsylvania, you should be aware of the factors that could increase your premium. Below is a list of factors that might result in an increase the premium of your auto insurance in Pennsylvania.

•             Increasing coverage for personal injury protection, medical payment, property damage liability and bodily injury. Your insurance premiums are directly proportional to the coverage amounts. Increasing the coverage amounts or categories covered under the policy results in a corresponding increase in your annual insurance premium.

•             Changing the vehicle you use or the purpose for which you vehicle is used. If you have previously used your vehicle for commuting between work and home and suddenly you decide to give it to your daughter who is attending college in a different state it could alter the premium of your auto insurance in Pennsylvania.

•             If you move to an area where insurance is costlier, your premium will also change accordingly. PA car insurance companies classify residential areas depending on perceived risk to a vehicle. For example, an area where the accident rate or auto theft rate is high is classified as a high risk area and an area where the accident and theft rate is low is a low risk area. The premiums for a high risk area are comparatively high.

•             Adding a new vehicle to your existing policy will increase your annual auto insurance premium. In the same insurance plan if you want cover for an additional vehicle the premium automatically increases.

•             Adding a new family member as a driver, especially a young driver will increase your insurance premiums. Young drivers are perceived to be more risky from an auto insurance point of view. Adding a new young driver will increase your premium.

•             If you are involved in accidents, it automatically classifies you as a high risk driver. Therefore, you are liable for an increase in premium.

•             In addition to the above conditions, the state Department of Insurance can allow an increase in insurance rates if your insurance company has suffered losses due to the customers it insures or due to market conditions.

•             A traffic violation in either Pennsylvania or any other state in the U.S. is likely to increase your auto insurance premium.  Your name will go in the non-resident traffic offender’s list which is circulated in all states.  Whether you commit the offense in Pennsylvania or any other US state, it will follow you and result with an increased auto insurance premium.

•             A lower deductible can increase your premium. A deductible is the amount you pay in case of an accident before the insurance company picks up the remaining tab. Thus a lower deductible is compensated by a higher premium.

The factors mentioned above are only the major ones responsible for an increase in insurance premium. If you want to know more about cheap auto insurance in Pennsylvania and compare insurance rates in your area you can enter your zip code on the top of this page. You can save hundreds of dollars annually in few simple steps.