Auto insurance premiums can increase for a number of reasons. The primary reason is inflation, however, there are some other factors including your age, your driving history, and factors in your local area. However, no matter what is leading to higher costs, anytime there is an increase in your premium, you should speak to your agent to learn more.
Speaking To Your Agent
When you receive your bill and notice a premium increase, before paying for coverage contact your agent. Start by asking why the premium has gone up. There could be a number of factors at play, so it’s a good idea to understand the reason. If your agent cannot explain the increase to your satisfaction, it may be time to consider speaking with a different agent and exploring your options.
Strategies To Lower Costs
There are some reasons your premiums increase that are pretty standard, but there are tactics you can use to deal with them:
- Poor Driving Record: If the increase is because you recently had a driving infraction, there are some strategies you can use to help. Some companies allow you to take a driver’s education program to reduce costs.
- Credit History: Sometimes your premium will increase because your credit history is a factor in determining rates. In this case, you’ll have to do some financial planning to get your credit history in good standing.
- Age: Your age is one of the biggest factors behind premium increases. Sadly, these increases are standardized across the industry so it isn’t much you can do about them. However, understanding when and how your premiums are impacted by your age can help you plan ahead for predictable increases.
There are some other strategies you can deploy like asking about discounts, bundling your policies, and reducing optional insurance on older vehicles.
Searching For A Better Policy
The premium increase can place a financial strain on anyone, especially those on a fixed income or a tight budget. A premium increase is a good opportunity to explore some of the other options that are available for coverage. You’ll want to start by reaching out to a couple of different companies and getting some quotes. Then you can compare these quotes. Don’t just compare on price alone though, keep in mind:
- Compare the deductible price
- Compare the coverages
- Compare the amounts of coverages
Comparing these parts of an insurance plan can help you make sure that you are comparing comparable policies and not leaving yourself without adequate coverage.
If you are ready to find a better policy at a great rate, Panorama Insurance Agency can help. We work with hundreds of different insurance providers to help find our clients the best deal possible. We’ll make sure that you get great coverage at a great price no matter what factors are influencing your premiums. We’ll assess your situation and provide a variety of quotes from different providers. Then we’ll help you find all the discounts, bundling options, and other ways to save. Give us a call today to get started!