Five Surprising Factors that Increase Your Auto Insurance Rates and How to Avoid them
1: You Have a Low Credit Score
A low credit score is an indicator of how a prospective customer handles personal finances, including paying bills on time. But insurance data also shows that drivers with lower credit scores file more claims, and more costly claims.
What You Can Do
Get a copy of your credit report and make sure there’s no errors, then ask to have negative entries removed from your credit history. Work to pay down your debt, then try to increase your credit limit. Once you’ve done all you can to increase your score, ask your agent for a new quote. Bringing your score up will not only lower your insurance rates, but help in other ways, such as securing a loan or mortgage.
2: You’re a Litterbug
If any vehicle occupant throws litter from a car window when a vehicle is moving along a highway in New Jersey, the driver can be held responsible. A fine of up to $1,000 can be imposed along with a likely increase in coverage rates for the driver.
What You Can Do
Littering is not only bad for the environment and unsightly, but illegal. Easy solution: make sure you and your passengers place your garbage in the proper trash receptacle.
3: You Tailgate
Tailgating doesn’t just annoy the person in front of you, it’s dangerous, illegal, and can ultimately raise your coverage rates. According to the state of New Jersey, “stated reasonable distance is a two-second interval space between vehicles on dry roads and a four- to five-second interval space on wet roads.”
Penalties in the state of New Jersey for tailgating come with a fine, five points on your license, and even a possible incarceration period.
What Can You Do
This should go without saying, but resist the urge to tailgate. Riding the bumper of another car rarely gets them to move faster, and it’s incredibly dangerous. If a vehicle ahead of you is driving slower than what is safe, wait for a legal and safe time to pass. Or just sit back and realize that it may take a little more time to get to your destination.
4: You Drive Too Slowly
This is not a misprint. Driving too slowly can earn you a citation and points on your driving record, especially on the highway. Doing so can block the normal flow of traffic, especially along a highway, and in turn pose a danger to other drivers.
What You Can Do
Go with the flow of traffic without speeding. If you are driving on a multi-line highway, keep to the right unless you are passing. If you are uncomfortable with highway speeds, consider an alternate route.
5: You Park Along Urban Streets
Parking your car on the street, especially in urban areas, can lead to more break-ins and theft, ultimately raising coverage rates for everyone.
What You Can Do
Consider parking in a garage or protected lot if you live or work in an urban area.
Contact Your Agent
Your agent at Esposito Insurance Group can answer your questions and help find ways to lower your rates. Call or text us at 973-284-1083.
Sources
https://www.thezebra.com/auto-insurance/driver/other-factors/car-insurance-bad-credit-drivers/
https://law.justia.com/codes/new-jersey/2013/title-39/section-39-4-97.1
https://www.iii.org/article/what-determines-price-my-auto-insurance-policy
https://www.state.nj.us/mvc/license/points-schedule.htm
By Colleen Woods-Esposito
