21st Century (4)|
American Family (21)
Farm Bureau (15)
First Acceptance (9)
Liberty Mutual (23)
Plymouth Rock (23)
State Farm (117)
The Hartford (16)
Q: It seems like there are only two different car insurance billing plans….pay it all or pay it monthly, are there any other options?
A: With some insurance companies it does feel like those are the only two billing plans available, but there are more. The thing is that most drivers are just so used to paying monthly for their premium or paying it all at once, so they don’t pay attention to any other payment plans that may be offered.
Depending on your company you may also be able to pay:
-Every 6 months
-Every 3 months
-Every 2 months
-Twice during your policy term (not necessarily at even intervals)
-Four times during your policy term (not necessarily at even intervals)
Your agent or your insurance company will be able to go over the different payment plans they have available.
A: Every time my car insurance policy renews it seems like it goes up and when I call and ask why I am told that the company has had a premium rate increase. Why do they need to keep having rate increases?
Q: Just like with any other business, increasing the price of a product is done to keep a company in business. In insurance, they may have to raise your premium because the wages in your state increased, which increased their cost to do business. They could also need to increase your rate because there was a disaster where they paid out a large amount on claims that were filed in your area. A rate increase could also happen because an insurance company wasn’t charging enough for insurance coverage to cover the number of claims that were filed over the course of the year. There are any number of reasons for why an insurance company has rate increases.
Insurance companies, however, are not allowed to just increase your premium at random though. Every car insurance premium rate increase you may see has to be approved by the state you live in.
Q: I used to pay the same amount each month for my car insurance bill and all of the sudden it has gone up and I don’t understand why.
A: First, read the breakdown in your bill very carefully. Your car insurance bill should include the balance you still owed on your policy before payment last month, last month’s payment, any changes to your policy premium and finally the current balance.
The changes to your premium, if there are any, will be the easiest way to learn why your monthly bill increased. These changes could be additional premium being added because your policy renewed or any changes that were made to the coverage of your current policy. If there are no changes showing on the bill, then it’s time to talk to your agent about your car insurance bill.