Arizona Auto Insurance Rate Changes
· by Matt Fox · posted August 14, 2009
· filed under Phoenix Auto Insurance category.
The past couple of years have seen some add changes in Phoenix auto insurance rates. As an independent insurance agent we get to see one company drastically raise their rates while another drastically slashes their rates. However, one thing remains constant, the way insurance companies rate Arizona Car insurance is changing and becoming more complicated.
We often hear, “I don’t have any tickets or accidents, why don’t my insurance rates go down?” Well, Phoenix auto insurance rates are more complicated than just tickets and accidents. Here are some factors most people don’t think about that can effect rates on your car insurance in Phoenix…and all of Arizona.
- Your credit – I know you’re thinking, “What does credit have to do with insurance?” Well, a lot I guess because it’s a huge rating factor and is often where insurance companies base your tier placement first. This tier placement is then a percentage discount or surcharge off the base rates of your car insurance. So, bad credit equals higher insurance costs. They have proven a correlation that bad credit equals higher claims rates. I don’t know if it’s true but if you’re worrying about money while driving down the road, chance are you’re not totally focused driving.
- Where you live – Insurance rates are based on geographic conditions. Someone living in downtown Phoenix will probably pay more than someone in North Scottsdale or on the skirts of Chandler, Gilbert or East Mesa. Why? More accidents will occur in downtown Phoenix because there are more drivers there every day. More accidents in your zip code equals higher rates.
- Glass Claims – Non-fault accidents, including glass claims generally will not cause you to lose your good driver discounts. However, many companies are now counting glass claims as a reason to place you in a higher tier for rating, like credit. This is because those with 1 or 2 glass claims per year are likely to have 1 or 2 in the next couple years. This causes the overall price of insurance to rise for everyone and they want to ‘section off’ those with high glass claims from those without.
Please, don’t yell at me. I’m just the messenger that quotes the rates. I don’t make the rates.
While insurance is there to pay for claims. Be careful on what you claim. If your windshield has a chip in it, repair the chip don’t replace the entire windshield. If you can do anything to improve your credit, do it. If you’re thinking about moving ask you agent about rates in the new zip code.
If you want to compare rates, fill out our easy 1 page quote form and let us shop your Phoenix AZ Auto Insurance for you.
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- It’s Just A Windshield, Right?
- Are Arizona Car Insurance Rates Criminal?
- The Real Key To Low Home and Car Insurance Premiums
- Arizona Auto Insurance Basics
- Where You Live Can Affect Your Car Insurance Rates
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