Take Action If Auto Insurance Premium Increase at Renewal

When you have had no adverse records in the last term of your policy you would naturally be surprised if the premium goes up. Normally, most auto insurers won’t raise rates and they should actually drop little by little. A sudden large premium hike suggest that either they found something negative about you or the factors affecting their premium calculations have changed.

auto insurance ratesProbably the first thing you should do is to call the insurer or the agent and demand an explanation. They have to give you the reason why you see such increases in the costs by most state laws. It is unlikely but hopefully there is a mistake somewhere. Getting to the bottom of the reason why you lost your cheap vehicle insurance rates is important moving forward.

There is a chance that they are getting wrong information from DMV. If so, you can try to correct it and get them redo the renewal quotation. Another problem may be that your credit score has deteriorated. This could lead to considerable increase in premiums. If this is the case you may need to look for an insurer which looks at your insurance credit score kindly.

Another reason for rate rises could be due to changes in state insurance laws. Legislation may require companies to pay claims in certain circumstances that they excluded in the past. These changes will likely affect the costs whichever company you go.  Increases in medical and auto repair costs are some of the other reasons. But this should only slightly reflect on your costs. This may affect all drivers regardless of driving records.

Regardless of what has happened this is your cue to look for alternative quotes. This is another way of confirming what your insurer is saying is true or not. Hopefully, you will manage to find a decent insurer with a lower quote and forget about the current one. If you realize that your current provider is still very competitive you will know that they had to increase the rates.

Normally, most motorists gets at least three quotes at renewal and compare them with each other in terms of coverage, quality of insurer and prices on offer. They do this even when renewal premium was lower. So, why would you be quite if you see yours going up.

A lot changes withing just few years in the insurance industry, among the companies and competition levels. A larger auto insurer may have just decided to move into your state and start selling policies. They would drive down the prices if they want to increase their market share quickly and establish their position. Otherwise, why would policyholders change to them?

You need to stay on top of your expenses if you want to manage an effective household budget. It is not easy to walk into your bosses office and ask for a raise each time your expenses go up. So, you need to find a way of saving more money so that you can enjoy doing other things as well. Would you rather keep your car insurance costs in check or give up going out instead?