by Amanda Finerty on Oct 4, 2017
"Hey Gateway! Why does my Auto Insurance Premium keep Increasing?"
Excellent question Mr. Vin Diesel! In fact that's the number one Question us Gateway Gals receive and we have the answer and tips to help you understand and keep those Premiums low.
It's unfortunate, but Insurance prices are not going down anytime soon. In fact, top companies such as Allstate Indemnity Company and Farmers were approved for a 6.96% Auto Increase in 2016. Filings were already approved for increases for many carriers in 2017 and already 2018. Good Drivers with no tickets or At-fault accidents cant even escape the inevitable.
But Why are Rates Increasing? I have chalked it up to these top 3 reasons for rate increases:
2. Insurance Fraud. Billions of Dollars a year are spent by Insurance carriers due to the incorrect data being collected from customers in order to get cheaper rates. That is why here at Gateway we strive to assist our customers with providing the most accurate information. There is no benefit to cutting corners now because it will only increase rates later.
3. Uninsured Motorists. The Insurance Research Council estimates that $2.6 billion in uninsured claims were paid out in 2012. (Uninsured Motorists, 2014 Edition. insurance Research Council www.Insurance-Research.org). Carrying at least the State required minimum insurance is better and less costly than carrying none at all.
"But what can I do to keep my Premium low?"
Another Great question Mr. Vin Diesel! As stated before, Premiums are not likely to decrease any time soon. But Gateway has some suggestions:
Renewal Reviews. It is suggested that once a year you review your Auto policy with an Agent. First topic to discuss would be Mileage, as Mileage is the #1 factor when companies are calculating your Premium. Keep track of your mileage; log the odometer reading at the beginning of the year and again 6 months later and provide your Insurance carrier with this information. This will assist in making sure your mileage is accurate and the correct amount of Premium is collected.
Review coverages. You always have the option to increase your Collision or Comprehensive Deductibles. Maybe you have a vehicle older than 10 years; let us assist in deciding if Liability only is the best option for your older vehicles. This may save money in the long run.
Longevity. The longer you are a loyal to your carrier the better your Longevity discount will be.
We hope to have answered your question about rate increases and look forward to doing an Auto Policy review with you soon!
Thanks for stopping by!