Is it Normal For Auto Insurance Cost to Go Up Every Renewal?
With the cost of fuel seemingly rising on a daily basis, the price of everything else goes up in turn.
Just when it seems like things can't get any worse, you get your bill for your car insurance renewal in the mail and BAM! - It's gone up too! So is this supposed to happen? More and more drivers are finding that their auto insurance premium just keep going up and up when it seems like it should be going down.
So why is this happening? Well, let's first off point out that no, it definitely isn't normal for your insurance costs to go up every renewal.
In general, as long as you don't have any accidents, tickets, or claims your insurance cost should go down the longer you stay with the same insurance provider.
When you stick with the same insurance company for a long time, you build up a sort of trust with the company, which usually earns you big savings.
The problem comes however, when you have accidents, tickets or claims, the cost of living goes up, or if you make changes to your insurance policy.
The one thing that many don't realize is how drastically accidents, tickets or claims can affect their insurance premium.
Some, on the other hand, realize that any reported claim (such as an accident) will make their premium go up, but think that if they don't report it the insurance company won't find out.
The fact of the matter is that if you or someone else involved reports an accident it raises your premium significantly.
If you get a ticket and don't report it, the insurance company will still find out about it and raise your premium.
Insurance companies have access to driving records so that they can better do their job and they will find out about any speeding tickets or the like eventually.
They will often check around the time when you are due to renew, which will result in a higher premium upon renewal.
The cost of living also can affect your insurance premium.
Insurance companies, just like everyone else, are subject to increased fuel prices, which raise their costs of simply running their company.
Everything trickles down form the cost of fuel; the cost of manufacturing product, the cost of shipping, and the cost of payroll.
Unfortunately, there is simply nothing to do about this.
Inflation causes the prices of everything to continually rise.
If you've made any changes to your policy recently, you may also change your insurance premium.
For instance, if you had multiple cars on your insurance policy or had multiple policies (such as life or home insurance) with the same insurance company, chances are you were given a discount.
If this situation changes and you drop one of your cars from the policy or change your homeowner's insurance over to another provider, you will lost the discount you had and your premium will go up.
So, no, it's not normal for your premium to go up with every renewal, but we live in a unique time.
The skyrocketing cost of fuel is raising prices on everything, including insurance premiums.
If that's not the cause of your increased rate, look at more mundane reasons like if you field any claims or made changes in your policy.
Just when it seems like things can't get any worse, you get your bill for your car insurance renewal in the mail and BAM! - It's gone up too! So is this supposed to happen? More and more drivers are finding that their auto insurance premium just keep going up and up when it seems like it should be going down.
So why is this happening? Well, let's first off point out that no, it definitely isn't normal for your insurance costs to go up every renewal.
In general, as long as you don't have any accidents, tickets, or claims your insurance cost should go down the longer you stay with the same insurance provider.
When you stick with the same insurance company for a long time, you build up a sort of trust with the company, which usually earns you big savings.
The problem comes however, when you have accidents, tickets or claims, the cost of living goes up, or if you make changes to your insurance policy.
The one thing that many don't realize is how drastically accidents, tickets or claims can affect their insurance premium.
Some, on the other hand, realize that any reported claim (such as an accident) will make their premium go up, but think that if they don't report it the insurance company won't find out.
The fact of the matter is that if you or someone else involved reports an accident it raises your premium significantly.
If you get a ticket and don't report it, the insurance company will still find out about it and raise your premium.
Insurance companies have access to driving records so that they can better do their job and they will find out about any speeding tickets or the like eventually.
They will often check around the time when you are due to renew, which will result in a higher premium upon renewal.
The cost of living also can affect your insurance premium.
Insurance companies, just like everyone else, are subject to increased fuel prices, which raise their costs of simply running their company.
Everything trickles down form the cost of fuel; the cost of manufacturing product, the cost of shipping, and the cost of payroll.
Unfortunately, there is simply nothing to do about this.
Inflation causes the prices of everything to continually rise.
If you've made any changes to your policy recently, you may also change your insurance premium.
For instance, if you had multiple cars on your insurance policy or had multiple policies (such as life or home insurance) with the same insurance company, chances are you were given a discount.
If this situation changes and you drop one of your cars from the policy or change your homeowner's insurance over to another provider, you will lost the discount you had and your premium will go up.
So, no, it's not normal for your premium to go up with every renewal, but we live in a unique time.
The skyrocketing cost of fuel is raising prices on everything, including insurance premiums.
If that's not the cause of your increased rate, look at more mundane reasons like if you field any claims or made changes in your policy.