Why Do Your Car Insurance Premiums Go Up on Renewal?

If you’re a good driver, seeing your insurance prices go up during renewal without any claims can be quite frustrating. You might think that your car is a year...

If you’re a good driver, seeing your insurance prices go up during renewal without any claims can be quite frustrating. You might think that your car is a year older and you haven’t filed a claim so ideally, you should be getting a better deal. Understanding how the insurance company sets the price for your auto policy will help you negotiate a better price. We bring you the 10 factors that might be contributing towards a higher premium on renewal:

1. Your driving history as well as the claims record

2. Any driving violations or convictions that might cause surcharges on your policy

3. If you have changed your address to an area that might be more expensive in terms of auto insurance, your premium will rise

4. When new drivers are added to the policy or there are changes of primary drivers of multiple vehicles included in the policy

5. If you have more than one insurance with the same company and you happen to cancel the home policy or any other policy, you might lose the bundle discount

6. Deleting a vehicle from your policy. More vehicles can get you better discounts, but if you remove a car, the premium of the other car will go up

7. If you change your employment, you might lose on a professional or group discount or if the work distance increases, you will have to pay more

8. Any medical conditions that might lead to reclassification as a high-risk insurance

9. Mistakes from the insurance company. It is possible that there is a computer or a human error in your renewal cost. Always double check with your representative if you are in doubt.

10. Changing the payment plan. Many times, insurance companies add service charges or change financing rates. It is best to check all payment options and pick the one best suited to your needs. For instance, some companies might offer zero financing while others might charge 5%. This will impact your annual insurance costs.

Other Factors That Can Cause an Increase in Premiums:
The other covers that are included in your policy are your liability, parts of your vehicle and the entire vehicle The value of your entire vehicle changes in a year even if you don’t have any claims. It is best to speak to your insurance agent to determine what part of the insurance has increased for better understanding. You can request a comparison from previous year’s premium on the following points:
• Liability (including property damage and bodily injury)
• Collision (may be impacted by claims)
• Comprehensive (theft, fire or vandalism)
• Endorsements

If the insurance company has paid out many liability claims for a volume of clients, it can impact their overall liability rates. If the number of collisions or vandalism has also increased in your area, the company might adjust the rates accordingly. Also, if your car model gets stolen often, you might notice an increase in your premium prices. It is best to install an anti-theft device to get a discount on your premiums.

While some factors of premium rates are beyond your control, there are many others that can help you get a great deal. It is always recommended to talk to your insurance agent before renewal and ask for all possible discounts in order to get a good deal.

For more information about Car Insurance Calgary and House Insurance Calgary Please visit : Beneficial Insurance Solutions.

Categories
Finance
No Comment

Leave a Reply

*

*