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Should I Shop Around for Insurance Before an Upcoming Increase?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 03/11/2013

Shopping around for insurance anytime is a good idea.

Q: I have been with my insurance company for 28 years and they raised my insurance premium almost 20% after my first at-fault accident in December. I just had another at-fault accident this March, but it was after my renewal. I have already been told to look for a 100 – 150% increase in my insurance premium on my renewal next year because of the 2nd accident. Should I start looking for a new insurance company before then? If so, how do I go about it?

A: It is always a good idea to shop around for insurance anytime you are unhappy with your insurance company, when you are curious if there are better rates out there, or if you are just bored on a rainy Saturday afternoon. In your case though, I would hold off until you see what the renewal amount is going to be on your insurance premium next year for two reasons.

One, I am surprised to hear that they gave you a percentage increase for your next renewal due to your second accident. Usually, insurance companies shy away from saying anything because until that computer calculates all of your information no one really knows what an increase will be. So you may not have as big of an increase as they are telling you right now. If you switch to an insurance company that offers you a rate just a little lower than this 100-150% increase and you take it, you may be switching to a higher premium and never know it.

Two, your current insurance company is only charging you with one at-fault accident in the calculations. When you start to shop around for insurance, these other companies are going to be figuring in 2 at-fault accidents. So enjoy the lower premium with just the one accident with your current company for the next year.

As far as finding a new agent or broker, I would take a look and see who sells insurance in your area. Talk to your friends and family to see who they are insured with, and read online reviews about the different insurance companies to see what people are saying.

To start, you can get quotes for different companies through our website by clicking here. This will give you a chance to shop around for insurance in just one place as you will get a number of different premiums from companies and agents in your area; then you can do the research on those specific companies as to who has the best reputation.

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Michele Wilmonen

Michele’s first introduction to insurance was working for a major insurance company as a file clerk and a mailroom supervisor in a regional office. She learned insurance directly from underwriters and claims adjusters from questions and also watching them do their job. Since then, she’s earned a number of insurance certifications from the Insurance Institute of America and also a Bachelor’s degree from the University of Idaho. She blogs at Car Insurance Guidebook.

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