Why Did My Car Insurance Rates Change?

Why Did My Car Insurance Rates Change?

Reasons Why Your Auto Insurance Rate Has Increased

Motorists are always looking for ways to save money on their car insurance. After all, even if they’re great drivers, they still need coverage to drive on the roads. So when someone sees that their auto insurance rate has increased, even though they haven’t filed a claim or been involved in an accident, it can be disappointing and confusing. Check out the common reasons as to why your rate may have increased.

When you take out insurance, that insurer is promising to have your back and be there to pay your claim (up to your coverage limits) if you cause an accident. As a result, insurers never know what they’ll have to pay, or how often, so they can’t offer you one flat car insurance rate forever. They’re always trying to forecast the average claim, meaning that your rate can change accordingly.

For example, if your insurer studies your neighborhood and finds that collision claims are being filed twice as often than the previous year, or for higher settlements, you might see a small spike in your premium even if you haven’t filed any claims. The same applies if you move from an area with fewer average claims to one with a higher number of average claims.

While your auto insurance premium may have increased, it’s likely that it only jumped up by a small amount. The good news is that claim trends can also go the other way – If your insurer discovers an improved claims history in your area, they could give you a rate reduction at your next renewal as a result.

Since the cost of car insurance isn’t fixed, it’s a good idea to regularly review your coverage and limits to ensure they still suit your needs throughout the year. Ensure that you’re not making these costly car insurance mistakes, too.

Keep your rates as affordable as possible by being a safe driver and review your coverage often! If you’re unsure what coverage is best for your needs, visit Gee Schussler Insurance for the right auto insurance for you!