do you really need the extra insurance?

Did Your Insurance Rates Spike? What To Do Next

by Rick Mcguinness

While auto insurance is a necessity, you don't want to pay more than you have to for it. However, it is pretty common for increases to occur. More often than not, inflation is a huge reason for the increase in premiums. However, another reason that your rates could increase is you and the way you drive. If you would like to find out why your insurance rates increased and what you can do to reduce your overall costs, keep reading.

Contact Your Insurance Agent to Find Out What's Going On

Your first step is to give your agent a phone call as soon as you receive correspondence of the premium increase. You need to find out why your premiums are increasing. There are many reasons why your costs are increasing, such as a recent speeding ticket or an across-the-board decision that is affecting all customers. In some cases, you may find out that there is not a solid explanation. Whatever the case may be, you can find a solution to lower your overall costs.

While you are on the phone, find out if you qualify for any kind of discount, as there may be a way to lower your premium rates. There may be something that you were unaware of that you can take advantage of.

Consider Securing a New Insurance Policy

While you may prefer to stick with the insurance company that you have been with for years, it may be in your best interest to shop around and find a new company that can provide you with a lower rate with the same type of quality coverage. If nothing else, just obtain a couple of quotes from other companies and see what you can expect to pay from other companies.

When doing this, though, make sure that you compare the insurance policies based on the amount and type of coverage provided to you and ensure that the coverage matches what you have now. You will also want to ask for any kind of discount that you can receive, including anti-lock brakes, safety features, good driver, and good student discounts. Don't forget to also see about bundling your home, life, and auto insurance policies to save money.

Improve Your Driving Record

If your driving record is not impeccable and has a few imperfections, you may notice that your premiums increase because of this. Now, there are some insurers that will provide you with a premium discount if you are willing to take a driver's education program. A refresher course like this will show them that you are serious about driving safely. Plus, over time, the points that have accumulated on your license will come off, and when this happens, you could potentially qualify for a lower premium.

It is not uncommon for auto insurance rates to increase from time to time, but there are steps you can take to obtain a lower rate. Speak to your independent auto insurance agent or request an auto insurance quote from a new insurance company.