This is a sponsored post from Nationwide Insurance. We did receive compensation to bring you this info.

5 Ways Your Car Insurance Can Go Up

From being a safe driver to taking additional driving classes, there are plenty of ways you can receive discounts on your auto insurance. However, there are just as many ways for your rates to drastically increase. Many rates are going up due to the rise of distracted driving and the increasing prevalence of smartphones in vehicles, according to one article from USA Today. By being aware of certain pitfalls, you can circumvent them to keep your premiums as low as possible.

1. You Get in an Accident

If you are in a car accident, even if you are not the one necessarily at fault, then you can still expect your rates to increase. In the event you ever get involved in a collision, you want to carry out damage control immediately. Contact your insurance provider as soon as you can to inform them of the situation.

2. You Turn 50

While not every insurance provider raises rates on older individuals, it is a fairly common practice. The reason is that people over 50 are more likely to end up in car accidents than younger people. This practice tends to not have too much grounding in reality because older individuals are less likely to text and drive, and they are more likely to wear a seatbelt.

3. You Purchase a New Car

Buying a new car means you need to update your insurance policy, and this means you can expect an increase in rates. The reason is that a new car is going to be more expensive than one you have driven around for years already. That means if something happens to it, the insurance agency will need to pay more.

4. You Have a Low Credit Score

A few bad financial decisions can make your credit rating drop drastically. In addition to having higher interest rates on loans, you will also probably need to pay more for car insurance. If you are worried about your insurance being impacted by your credit rating, then you should ask your insurance agent about the provider’s policy. Some insurance companies do not look at credit scores at all.

5. You Move

Auto insurance rates vary from one state to the next. In fact, they can even vary between cities in the same state. The reason is that some cities have higher accident rates than others, so auto insurance providers in those areas cost more. If you are concerned about this, then you may want to consider looking at the insurance policies for your new home. Ask around to see if your premiums will go up, and if they will, then how much will they increase.

You cannot always control how much you end up paying for auto insurance. However, by being aware of the numerous factors that go into determining premiums, you may be able to avoid mistakes that could cause your rates to go up. Some tips for decreasing your insurance rates include going high on your deductibles and avoiding comprehensive coverage on an older vehicle. With some easy steps, you can save money.