My auto insurance just renewed, and it went up again! It seems like every time I turn around insurance fees are getting higher and higher. What can be done about this? I’ve heard time and time again that you should shop around for car insurance. If you have to but don’t know why or haven’t, follow along for why it’s good advice.
The biggest reason to shop for auto insurance is that prices vary by company. Each company has a different pricing formula they use to determine how much your premium will be. This formula takes into account your gender, age, neighborhood, years of driving experience, education level, and even your employment. These factors can essentially increase or decrease your rates. It’s best to plug that information into a few companies and see which will offer you the best rate based on your personalized factors.
Loyalty Doesn’t Pay
Just like jobs incentivize new hires, so do insurance companies. The longer you stay with them, the more they believe you’re not going anywhere. They know that you’re interested in sticking with them because they have proven to be a good company despite the high rates. They also know you do not want to risk leaving and taking a chance with a new company. That leads to gradual price hikes for you and enticingly lower rates for new customers.
Tickets and Wrecks
Tickets and wreaks may have kept you loyal to your car insurance provider. With those on your driving record, your insurance likely went up, and other companies may have deemed you high-risk or uninsurable.
While that may be true for a few years, you should monitor your record for when these offenses fall off. When tickets and wrecks fall off your accounts, you can get access to decreased premiums with other carriers.
Car insurance premiums often go up. Don’t get stuck with a bad rate. Instead, shop for car insurance.