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Compare Car Insurance Rates Annually

Compare car insurance rates annually to make sure you do not end up overpaying for your coverage. Many drivers get into long term relationships with insurers and end up basically feeling locked in to their policies. Over time working with one company you sometimes build up substantial discounts that seem to make it impossible to break free and seek out alternative representation for your auto insurance needs. Loyalty discounts given to drivers who have stuck around with one insurer for a number of years are one prominent example of savings motorists often don't feel they can match anywhere else and as a result don't bother looking for the cheapest online insurance quotes.

But on the flip side, our rates also experience increase over time in incremental stages. Insurers find any reason they can to drive up prices on long term customers, often doing it just a little bit at a time to make it harder to really strenuously object as subscribers. If you have an accident, even if it is your first one in years (and sometimes even if it was not your fault), you can lose an accident free discount which in reality just means you have to start paying a surcharge as a member of a higher risk class of motorists. If a new teen driver joins your policy, cost increases can really get out of hand because these new drivers are the hardest of all to insure. And motorists should definitely think twice about filing claims, because daring to actually use your coverage can result in rate increases as well.

Why Car Insurance Premiums Increase

There are many different reasons why auto insurance companies raise their rates on drivers, even those they have been working with for many years. Statistically relevant changes in your profile may make a difference. Moving to a new address with a higher crime rate or that does not have a garage could be an example. Buying a car that's historically been tied to high rates of theft or other claim types may be another. There are virtually endless examples out there of things that can happen inside or outside of our control that could very well cause a steep rise in the prices we pay for our policies. Many of these things have absolutely nothing to do with our driving records or our performance behind the wheel.

To put it all into general terms that are true in every circumstance, rate increases are either tied to one of a few basic sources: increased cost of administering a policy or increased risk of insuring a customer. The latter occurs when a company simply sees an uptick in the cost of doing business. Maybe the way a state handles regulation ends up costing an insurer more money on that end. To recover their losses, insurance companies may have to increase prices in that state across the board. These have nothing to do with the particular attributes of individual drivers.

Now, the risk of insuring an individual motorist is closely tied to our driving records as well as to other factors. If you get into an accident or are hit with serious moving violations, you might be thought of as a higher accident or claims risk. If your credit report gets multiple marks that component of your insurance score will greatly suffer. All told, there are many different ways a driver's risk classification with an insurance company could be changed. And this kind of thing can happen even if you are a long time, loyal customer who keeps a spotless driving record and always pays premiums on time.

Comparison Shopping for Auto Insurance

As a consumer, there is little you can do about an insurer choosing to increase your rates - even things like taking defensive driving courses can only help so much. Of course, we all have the right to call and complain, to inquire about the reason for the increase, and even to threaten to switch providers. But in reality the greatest weapon anyone has in the fight against an insurer hitting them with higher premiums is the refusal to pay. Don't just make a fuss about it with some poor customer service representative that had nothing to do with the price increase, and then furiously write out the premium check and dash it off in the mail. Before bowing to the authority of an insurance provider, make sure you have it on good authority that better prices aren't out there. And in many cases if you do some checking around, you'll actually locate some better deals.

Checking prices every year before you pay that ever increasing car insurance premium ensures that you will never be out of the loop on the current state of the market and that you'll never pay more than you ought to for your policy. Compare car insurance rates annually and keep track of what other companies are offering.


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