Why did my auto insurance premiums go up when I didn’t have any claims or tickets and what can I do about it?
Most of us have been there… Our auto insurance renews, and you find your rate went up for no apparent reason. Did I get a speeding ticket…? No. Did I get into an accident…? No. Then why would my rate go up? It’s not fair… What can I do about it!?
Call your agent
Before you speculate about all of the reasons why your rate went up (or shouldn’t have), it’s always a good idea to call your agent or carrier and see if it’s something you are missing or maybe even forgetting. Life happens! And we are so busy, we may forget about something that did have an impact on the price after all. For example: That time when you tapped that bumper in the parking lot. It didn’t seem like a big deal at the time (because it wasn’t), but the insurance carriers will still count that as an accident the same way they would if it was a more severe crash. Calling the agency or carrier that takes care of you can at least review your account and see if there is anything that you blocked out of your memory.
No accidents or tickets verified but rate is still higher…
Ok… So you spoke with your agent or carrier and confirmed you are right! You did not have any new tickets or accidents, yet you still have a higher rate. Now what!? Well that depends… How much did it go up? $1.00/mo.? or $100/mo.? You might say it shouldn’t matter but it absolutely does. Why? Because your time is valuable!
The insurance industry, like any other portion of the market, gets to decide how it prices its products. Our free market system at least allows you to decide which carriers you do business with and why. So, if the rate goes up and there’s nothing you did on your end, then it’s probably just your carrier adjusting its prices based on their profitability results or goals. Rate movements of any kind have real impact on their bottom line. Chances are if you didn’t do anything to cause the rate adjustment, then you aren’t alone. Carriers are heavily regulated and ultimately have to treat all people within their respective segments equally. So how the adjustment effected your rate personally should tell you how much concern you should have. As a general rule, most things in the world are impacted by inflation. Insurance costs are not immune to this. So, if the rate changed by the cost of inflation then basically your rate didn’t change…What changed is the value of money. But if the rate is up by a larger margin, then something might be telling you it’s time to consider a switch…
So how do decide when it is right to make a switch…
Change can be scary for all of us. But the truth is that you’ll decide when it is right for you. For most of us it’s when the bill is just too high…
So how do you decide where to shop? A local independent insurance agency is usually the best way to start. Independent agencies have a competitive edge, as most of them will represent several carriers under one roof. This gives them a chance to see how your personal risk stacks up in the market place. They’ll ask several questions for your application, presenting those details to their list of options, and will typically allow you to see side by side rate and coverage comparisons giving you the best chance of finding the right fit for your needs. If you are ready to start today, let us help you take the first step!