If you are a cautious driver with no speeding tickets and a clean driving record, it may come as a surprise to see your insurance premium rising. However, there are a few reasons why the jump may have taken place, and there’s also a chance you can do something about it!
Why Do Auto Insurance Rates Rise?
Moving
Moving to a different state will naturally lead to auto insurance changes, but many drivers are surprised to hear that even a move to a different zip code can have repercussions. These changes are mainly based on crime rate and population density changes.
Credit Score Changes
Many auto insurance providers factor in credit score when underwriting. If your credit score has taken a significant plunge recently, your auto insurance rates may increase as a result.
External Factors
There are several factors out of our hands that control our auto insurance prices. For example, the fact that more drivers are on the road than ever before means that the chances of accidents are higher. Insurance companies may raise their prices to compensate for this and similar phenomenon such as rising repair and medical costs.
What is the Best Response?
If your auto insurance has unexpectedly risen for any of the above reasons, there is a chance you will be able to do something about it. Your track record of clean driving and vehicle’s safety features may put you in a position to be eligible for a discount. It can’t hurt to ask! Additionally, you may be able to request larger deductibles in exchange for a lower monthly rate.
If your insurance company offers no reasoning for your price increases and no compensation, it may be time to start shopping around for other policies. There is always competition amongst auto insurance companies, and it is in your best interest to seek out the best deal possible for your situation. You may even discover that you can save a lot of money by switching to a bundled insurance package.
Choose Car Insurance Coverage that Works for You at Freedom Insurance
We offer comprehensive, customized coverage from numerous major insurance carriers and make it easier than ever to find affordable policies that are exactly what you need. We have been serving clients throughout the greater Howard County and Carroll County areas since 1979, and we look forward to helping you and your family thrive. Get in touch today by calling (410) 795-2000 or requesting a free quote.
