What Causes Rate Increases

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Worried about your insurance rates going up?  Here are some things you can do to prevent a rate increase!  

There are a lot of factors that go into determining your insurance rate.  And at times, your rate may go up (or down!)  Let’s look at what can cause changes:

You bought something new.  If you purchase a new vehicle, there is a good chance your insurance rates will change somewhat.  If the vehicle is newer, more expensive, or if you have a lienholder and require full coverage, your rate may increase.  

Why do some vehicles cost more than others?  Simply because some cost more to fix!  All of these things play into the rate on that particular car.  We always recommend that you contact us for a quote before purchasing a new vehicle.  We can tell you exactly how much your rate may increase or decrease depending on your purchase.  This can prevent a big surprise later!

You changed your household.  Any household changes may change your rate.  Getting married might lower your rate, but adding a teenage driver will probably increase it!  Rates are determined by the age and driving history of each person in the household.  That doesn’t mean you’ll see huge swings in price, but just keep it in mind when making changes.

Once again, you can contact us to get a good estimate before making a change.  Maybe you know that your teenager will need to be added in six months and want to start preparing your budget now.  We can help you prepare and give a good idea of what your new rate will be.

You moved.  Rates are also calculated based on the zip code where you drive the most.  If you move from a high traffic city to a much less populated rural area, your rate will go down (and vice versa).  Always make sure that the accurate zip code is listed on your policy and update us if your vehicle usage changes.  If you go from commuting 30 miles per day to only driving occasionally, we can update your policy to keep your rate lower.

You got a ticket.  Unfortunately, getting a ticket can raise your rates.  It shows that you’re at a higher risk of having an accident and causing a claim.  Keeping your driving history clean will save you money!  If you do receive a ticket, this won't be reflected in your rate until your next renewal or when the company checks your driving history report.  

You lost a discount.  Most policies have several discounts included and if those discounts expire, your rate may increase.  If you’re receiving a discount for being accident free for several years and then have an accident, the loss of the discount will increase your rate.  Maybe you were receiving a discount for having your Homeowners insurance with the same company and moved it to another company.  That lost discount would increase your auto policy rate.  

Or maybe you were receiving a discount for having your policy on monthly draft and then decided to just send in a check.  You might see a slight increase here too.  

The best way to keep your rate low?  Work with us!  As a local agency, we’ll review your coverage, discuss your discounts, look at potential risks for rate increases, and help keep you protected.  Call today at 715-598-9924 for a quote!  



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