Compare Rates From Top Providers
Save Up To 46% on Car Insurance
Enter Zip Code:

Another Car Insurance Premium Rate Increase?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 08/31/2016

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.

I Can’t Read My Car Insurance Bill

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 08/30/2016

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.

 

Your Credit Score and Your Car Insurance Premium

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 07/30/2016

Q: Why does my credit score have anything to do with my car insurance premium?

A: When insurance companies started using credit scores as one of their rating factors there was a huge outrage as people did not understand how their credit score had anything to do with how safe of a driver they were. And honestly, credit score has nothing to do with how safe of a driver you are.

However, that’s not why insurance companies use that as a factor in your premium, you can thank all of the people that have successfully and unsuccessfully filed fraudulent claims in the past. They use your credit score as an indication as to whether or not you are likely to try and commit insurance fraud because you need the money. Insurance companies have stated that they have data that backs their claim that people with lower credit scores are more likely to commit insurance fraud.

With that being said though, some states are working to overturn this rating practice and we will see what happens in the future.

Roadside Assistance on Your Car Insurance

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 07/31/2016

Q: My car insurance agent said that I can add roadside assistance to my car insurance policy, but I already have AAA. Which one is better?

A: Actually the best thing to do is to ask your insurance agent for the details in writing of what is covered in the roadside assistance that is offered as an option on your insurance policy. Then compare what is offered there to what you have on your  AAA roadside assistance.

Each insurance company offers different roadside assistance packages so it is different from one company to the next. There are even different levels of the packages within the same company. So get the details of what is being offered on your specific company’s car and do a comparison.

Why Did My Car Insurance Premium Go Up?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 07/30/2016

Q: I just got my car insurance renewal and my premium went up, but I have had no claims or tickets. Why did it go up?

 

A: If you have not had any claims or tickets, your car insurance most likely went up because the company had a state-approved rate increase since you last renewal. Increases can also be because the safety and claims data for your vehicle has been updated, this can happen on any year vehicle but more often on current or next year vehicles.

Your credit score can also have an affect on your car insurance premium.

If you have seen a recent increase in your premium, talk to your insurance agent to find out why. If you are unhappy with the answer you can always have your car insurance agent get you quotes from other companies to see if they cant find you a better rate.

Save Up To 46% on Car Insurance
Enter Zip Code:

Car Insurance Guidebook Unravels the Car Insurance Mystery

Unless you work in the car insurance industry, the topic is probably a mystery to you. The words deductible, comprehensive, collision, liability, premium, loss of use and bodily injury are all gibberish when they reach your ears.

Unfortunately, insurance is something that you are required to have by law if you want to drive. Because of how confusing it is many people go around in almost an insurance daze while they get car insurance quotes from the auto insurance companies that they have heard of. In reality, they are completely lost as to what they are actually buying.

Instead of looking at what each insurance company offers in the terms of protection for both themselves and their car, they are instead looking for cheap car insurance. Finding the cheapest car insurance coverage makes having to buy the required product all that much less painful, but misses the whole point of having insurance.

Learning about insurance through your insurance agent or websites like Car Insurance Guidebook will give you the upper hand when you looking for car insurance. You can take your knowledge and not only find the best price for insurance, you can use it to find really great insurance to protect you and your assets. Then you aren’t stuck settling for just average car insurance that can hurt you financially if you ever need it because there isn’t enough protection.

For example, when looking for insurance the car insurance rates are just the first of many factors that need to be taken into account when you are shopping around for car insurance. You also need to take into account the type of vehicle that you are driving. Many people don’t know this.

Are you driving around a vehicle that is a new sedan and can be protected under any blanket insurance policy? Or do you have an old car that you fixed up that needs special protection and could be better covered under classic car insurance?

Don’t just assume that when you compare car insurance that it will be a one-size-fits-all policy. This is where the insurance knowledge will come in handy; you will know what you need to protect yourself and your vehicle.

You will understand what your insurance agent is talking about when they use insurance terms and you will actually be able to make an informed decision. This is much better for you instead of the “nod and smile” approach people take in their insurance agent’s office.

Also just like your life changes your insurance needs will change. This year you may just need to learn about the best deductible to have. Next year you may need to educate yourself on car insurance for young drivers. As the years pass, motorcycle insurance may be something you will need to know.

Many wise people say that you never stop learning, so take their advice and educate yourself on the insurance that you spend a lot of money on and can’t get away with not having.