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Why Your Auto Insurance Rate Has Increased

Why Your Auto Insurance Rate Has Increased

Why has the cost of my insurance increased?

As a driver, you already pay for gas, car maintenance, and auto insurance, not to mention other bills and expenses. So when you get your latest insurance bill, and find that your rate has increased, we understand the frustration. Sometimes, it seems like your insurance agency is out to take your money, but that’s simply not the case. Here are some common reasons why your rate may have increased.

Your Driving Record

If you have a history full of claims, or if your driving record is less than stellar, your rate will likely increase. If you are costing your insurance company more than other drivers, they need to charge you a higher price for your policy.

Distracted Drivers

Like it or not, distracted drivers make everyone’s rates go up. This is because of an increase in accidents, tickets, and more money shelled out from insurance companies. Thus, they compensate for these higher expenses by increasing rates for everyone. All drivers need to stay off of their phones, avoid doing other tasks in the car, and focus on driving to help bring rates back down.

You Removed a Vehicle From the Policy

You may have been receiving a discount for having more than one vehicle covered under your policy. If you recently removed a vehicle, your discount may no longer apply.

You Cancelled a Policy

If you recently cancelled a policy, such as house or life coverage, you may find your auto rate has gone up. This could be because you were receiving a discount for having multiple policies, or your auto coverage was part of a combined package discount that no longer applies.

You Moved to A Different Area

Different areas have different rates of insurance due to a number of factors. If you recently moved, you may now be in a more expensive area.

You Added A New Driver or Made A Change

If the primary driver on your policy has recently changed, or if you added a new driver, such as a teenager, to your policy, your rate is likely to go up to accommodate for the cost increase expected by your insurance company.

Your Payment Plan Was Changed

Sometimes, insurance companies make changes to their financing or payment structure, or add new service charges, causing an increase in rates for all customers. If you think this may be the case, take a look at your payment options and work with your agent to choose the best financing plan that will cost you the least.

As always, if you are unsure why your auto insurance rate has gone up, or are unsatisfied with your current rate, contact your insurance agent, or visit their office to sit down and discuss your situation. Your agent is here to help ensure that you have the best coverage at the rate that fits your lifestyle. Contact your insurance agent today and start saving!

 

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