If you’re like most people, then you probably already feel as though you’re paying too much for your auto insurance. However, if you’ve recently noticed a rise in your premium, you may be feeling understandably frustrated. Most people know that traffic violations, accidents, and other claims can increase insurance premiums, but if you haven’t filed into any claims or gotten any tickets recently, what could have caused your premium to increase?
A Recent Move
Many people don’t realize that insurance premiums are, in part, determined by where the policy holder parks his or her car at night. Therefore, if you’ve recently moved and updated your address with your insurance company, there’s a good possibility that your high rates can be explained by higher risk factors in your new area. There may be a higher rate of car theft, vandalism, and other vehicle-related crimes. As such, your insurance company had to adjust your rates accordingly.
It’s also possible that you accidentally forgot to pay your insurance bill, resulting in a temporary loss of coverage. Unfortunately, any lapse of coverage–even if it’s just for a day–can have a big impact on your insurance premium. Insurance companies tend to view those who allow their coverage to lapse as being a higher risk, so they charge higher premiums. Consider setting up an automatic payment plan with your bank to avoid lapses in coverage in the future.
Reducing Your Insurance Premium
If your car insurance premium has risen for any reason, surely this can be very stressful—especially for those on a budget. However, the good news is that there may be some ways to reduce your premium. Start by checking with your insurance company to make sure you’re taking advantage of all the car insurance discounts for which you qualify. Furthermore, consider investing in safety features that will make your car safer, such as an anti-theft system or even anti-lock brakes. These small investments can not only give you greater peace of mind while driving but can pay for themselves over time when it comes to insurance savings.
Noticing a spike in your car insurance premium is often a confusing experience; if none of these explanations seem viable for your specific situation, then you may want to consider calling your insurance agent. Companies like Ed Ramming Insurance Agency Inc want their agents to work with their customers to ensure their satisfaction. The agent will be able to investigate your specific policy and determine any reasons for a policy increase.
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