Auto Insurance

May

2023

What In The World Is Going On With My Auto Insurance?!?!

If you’ve received a renewal notice for your auto insurance, or tried to purchase a new policy, you may have noticed that options are extremely limited and the cost is through the roof. Here’s what you need to know:

1. The California Insurance Commissioner has approved more than $1 billion in premium increases at the state’s top six companies, which insure about 48% of California registered vehicles.

2. Many companies have temporarily stopped writing new business in California, while others are implementing paid in full requirements or hold times between when you purchase your policy and when your policy becomes active. These can run anywhere from 3 days to 10 days, and you must pay for this coverage in advance.

3. People are driving about as many miles as they were before the pandemic, but they’re doing so less safely and causing more accidents.

4. The cost of your premium is directly tied to the money your insurance company pays out when you file a claim. This includes parts and repairs, rental cars, medical bills. Because all of those sectors are experiencing price increases or supply chain issues that cost is going to be passed along to you.

SO WHAT DO I DO?

This is one of those times where having an independent agent is a huge asset if you run into trouble, we’re here to help you in any way possible. In the meantime, we STRONGLY recommend that you do the following:

1. Make sure your current policy is on auto pay. If your policy cancels because of a late payment, even a single day, there will be consequences you may not have faced in the past. If we are able to reinstate the policy with the same company, the cost of your premium is going to go increase, sometimes by as much as double, in cost. Additionally, you will no longer be able to reinstate your coverage on the same day and will be subject to the same 3-14 day waiting period. If we need to place your policy with a new company you can expect the same thing, higher premiums and a waiting period before your policy becomes active. In all of these situations you will be required to pay some or all of the policy in advance.

2. Plan ahead. If you’re looking for a new car, know your policy expiration date is coming or aren’t going to be able to make your payment in time, get in touch with us as far in advance as possible by email or calling us at (760) 271-6651. The more we know about your situation the more helpful we can be.

3. Expect to pay more for new coverage and expect to pay a larger portion up front, at least for now. We’re here to help, but please understand that options are limited right now.

Feb

2023

Why Did My Car Insurance Rates Go Up?

If you need help lowering your car insurance costs try our free online quote, call (760) 271-6651 or email us.

The average cost of full coverage auto insurance has increased nearly 14% from last year.

Why? It’s a lagging effect of high inflation from the last two years that resulted from labor and parts shortages, which in turn drove up the cost of paying insurance claims on car repairs and related insured expenses.

A rise in your cost for car insurance can be frustrating, especially if you haven’t filed a claim and have a clean driving record. But know that insurance premiums aren’t raised on a whim, and the reason for a rate increase is almost always tied to insurance risk. Auto accidents and traffic violations are common explanations for an insurance rate increasing, but there are other reasons why car insurance premiums go up including an address change, new vehicle, and claims in your zip code.

REASONS FOR A RATE INCREASE
If you’re wondering, “Why is my car insurance so high?” you may have experienced one or more of the factors below. While most of these factors are manageable, there are occasions when your rate could increase, or even decrease, for reasons beyond your control.

SPEEDING TICKETS AND OTHER MOVING VIOLATIONS
Violations on your motor vehicle report, especially a DUI or multiple speeding tickets, tell your insurance company that you’re more likely to have an accident than a driver with no violations. The more violations you have, the higher your risk to file a claim—resulting in auto rate increases. Even a minor moving violation could increase the cost of your auto policy. Keep in mind that insurance companies won’t increase your rate due to a non-moving violation like a parking ticket.

ACCIDENTS: BOTH AT FAULT AND NOT AT FAULT
Just like with violations, at-fault accidents on your driving record indicate you’re at risk for another, and insurance companies will price you accordingly. You may ask, will my insurance go up if I file a claim for an accident that isn’t my fault? In some cases, yes—even accidents you didn’t cause can increase your rate in states that allow it, as insurers have data revealing that some drivers have a propensity for not-at-fault accidents.

Even accidents that you didn’t cause can increase your rate in some states.

COMPREHENSIVE CLAIMS
Depending on your insurance company and the state where you live, your rate may increase for incidents out of your control. These incidents are called comprehensive claims and include theft and vandalism, hitting an animal, fire, glass breakage (including a cracked windshield), hail/weather-related damage, and other acts of nature.

ADDING VEHICLES AND DRIVERS
If you purchase a more expensive car, your rate is likely to go up as your new ride may be more likely to be stolen and cost more to repair or replace than your previous vehicle. Adding new drivers to your existing policy could also drive up your price—especially teenagers or other family members with poor driving records.

CLAIMS IN YOUR AREA
As unfair as it may seem, you may see an auto rate increase due to insurance data in your zip code. If your city has a high rate of theft, accident, and weather-related claims, it becomes riskier for an insurance company to cover drivers in your area. That risk can lead to an auto insurance price increase, even if you have a perfect driving record.

MOVING
Changing the address where your car is “garaged” (kept overnight) is a rare instance where your rate could increase mid-policy without making changes to your coverages, vehicles, or covered drivers. If you’re moving out of state, you’ll require a new policy. However, if you’re remaining in the same state, your rate could go up based on claims in your new zip code.

AGE
While senior discounts may be available depending on your insurer and state, your rate could increase once you reach the age of 60. From a risk perspective, insurance companies often view senior drivers in the same way as teen drivers.

LAPSE IN COVERAGE
If you’re looking to reinstate a policy or start a new one and are coming off a period of being uninsured, you’re often going to pay more for insurance. Learn more about car insurance lapses.

LOSS OF DISCOUNTS
If you were earning discounts for having no tickets or accidents on your driving record, your auto rate increase will be two-fold. Not only will you be charged for the violation and accident, but you’ll also lose any associated discounts. Other common discounts you could lose if your situation changes include ones for being a homeowner, going paperless, and having more than one product insured with the same company.

_{Content courtesy of Progressive Insurance}