It has been six months, you open up your auto insurance renewal documents, and notice it has increased.  Your first thought “my insurance went up, but why? You recall no accidents or received any traffic ticket.  You then question why you do not have lower auto insurance cost!”  Your next step is to then call your insurance agent to get answers as to why the increase.

Factors That Contribute To Increased Auto Insurance Cost

  • Rise in cost of labor and parts to repair a vehicle
  • Claim results of accidents in a specific area involving vehicles and injury or medical claims
  • Rating factors that include new address, your credit score and/or educational factors
  • Driving more miles which increases the probability the insured could be involved in an accident
  • Insurance company operating expenses
  • New rate plan for all drivers agreed upon by your insurance company and your state
  • According to the AAA Foundation for Traffic Safety for the month of February 2016 about 87 percent of drivers committed at least one risky behavior; this increases the amount of accidents which then adds to the size of claim settlements.  Even though you may not have filed a claim yourself you will feel the increase as a result from claims filed to your insurance company by other drivers.  Although the rate increase may be out of your control and that of your agent, there are ways to save money on your premiums.

Ways To Lower Auto Insurance Cost

  • Always ask your agent to shop around doing so could potentially save you hundreds of dollars simply by switching companies; remember you do not have to wait until renewal, you can change policies at any time
  • Being loyal does not always pay as discounts for long time policyholders is not a guarantee you are saving money. Your agent should give you various options on companies with the best rates.
  • You can go for the higher deductible of $1,000 instead of $500, it will be a higher out of pocket if you are involved in an accident but the benefit is that it will lower your premium and keep you from reporting small claims.

Contact us to inquire of a possible lower rate than what you may be receiving now.