Why Your Auto Insurance Rates May Change

Have you ever noticed that you may pay a different amount for your auto insurance then your neighbor — and even your spouse? The reason being, most insurance providers look at a number of factors and give each individual a unique rate. Here is some insight about how that is decided.

Your Accident History

Having a flawless driving record could ensure that your auto premium is at its lowest and most consistent rate. However, even a not-at-fault accident will still affect your rate because it goes on your record as an “incident.”

The Condition of Your Car

The price of your premium can be affected on whether you buy a brand new car or a used-used car (twice removed from the original owner). This happens because brand new cars have less of a chance of breaking down, needing repairs, or requiring replacement parts as opposed to an older used-used car. 

Resident Household Members

Depending on the driving record of the relatives living in your home, your policy may be affected — especially if they are also listed on your auto insurance. A resident relative is a person who is either the spouse or family member living in the same home as the policyholder (you). If this person gets into an auto collision, there is a high chance your insurance policy premium will increase.  

Adding a Teen Driver

When adding your teenager to your auto policy, it may be quite expensive and it is essential to be prepared. If your child is enrolled in a driver’s education program like AAA or they have good grades, they may qualify for a “Good Student Discount” through Doherty Insurance. If you are curious about whether or not you qualify, give us a call: 978-475-0260.

You may remember that back in 2005 the state of Massachusetts had regulated auto insurance rates, where everyone would pay one flat price. However, when Mitt Romney came into office he changed the policy making it a competitive field for insurance companies — think of it as a way to reward safe drivers. When this policy change happened, each company created their own criteria for rates and reasons why your premium would go up and down. If you have any questions on your auto insurance premium, please don’t hesitate to contact a Doherty Insurance agent — we’re always here to help!



Doherty Insurance Agency
21 Elm Street
Andover, MA. 01810
Telephone: 978-475-0260
Fax: 978-475-0303