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Surprising things that can increase your insurance Premiums.

These include Driving records, credit score, home claim history, car power and more.

Insurance companies want to make as much money as possible from Car owners but don't want to pay up. They therefore try to look for things that can increase the probability that someone will file a claim for compensation and they will use these things to justify increase in your car insurance premium.

Your Driving Record is one main thing that insurance companies look at. If you have a clean driving record and have had no accidents or tickets, that means you are less likely to file a claim and hence they will reduce your premiums. However if you have a bad driving record, you have higher chance of having an accident hence filing a claim and the insurance company will use this to raise your premiums.

A persons Credit Score is one surprising thing that Insurance companies use. They have done studies that show that people with high credit scores have lower chances of getting into accidents than people with low credit scores. So don't be surprised when you fail to pay your bills, they bring down your credit score and then you suddenly see your insurance premium going up.

For Home insurance, many companies will check for information on the claims filed for that home in the last 7 years on the Comprehensive Loss Underwriting Exchange where insurance companies share information. So if that house has a history of damage claims, even before you were living there, you may find your home insurance premiums being increased.

The power rating of your car is another thing that insurance companies take into consideration. The cost to insure a 6 Cylinder car is higher than for a 4 cylinder car of the same model.

So you may want to buy a lower power car to save on car insurance premiums.


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