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My car insurnace rates went up!!! What can I do about it?

There are a number of reasons why your car insurance rates may be on the rise.  Some of the reasons you may be seeing an increase in your rates may specifically be related to you.  On the other hand there are external factors not specifically related to you that can cause auto rates to go up.  Lets take a look at a few of the reasons your insurance rates may have gone up and talk about what you can do about it.


Factors Directly Related to You:

1.     Have you filed any claims?

2.     Your driving record…Any speeding tickets or other moving violations in the past three years?

3.     Major Violations are a really big deal!  Did you get a DUI, reckless driving or major speeding violations?

4.     Did you change vehicles?  Purchasing a more expensive car means that vehicle will be more expensive to repair or replace.

5.     Did you add a new driver?  Turning 16 sure is an exciting time!  Unfortunately youthful drivers tend to be riskier to insure due to their inexperience behind the wheel.  On the other hand, as you age over 70 years old some insurnace companies rate for older ages as well.

6.     Did you lose you multi policy or multi vehicle discount?


External Factors:

1.     Has you auto insurnace carrier been profitable over the past few years?  Unfortunately for most carriers the answer to that question is that they have not been profitable.  The nations largest personal auto insurance carrier reported they lost over $7Billion in 2016.


You can read all about it here:


They are not alone, most of the insurance carriers we work with are reporting that they have not been profitable due to large auto liability claims.

2.     Car theft and accidents may be on the rise in your region.

3.     Distracted driving.  Most carriers are reporting that distracted driving is not only increasing the frequency of auto claims, but also the severity of claims.  In my agency we have noticed multiple large claims over the past 4 years related to distracted driving whether our client caused the accident or they were the victim of a distracted driver.  These have been by far the largest claims we have seen.  So please, put the cell phone down.


What can you do?

If you have a good driving history, your are in the driver’s seat.  The best advice I can give someone is to work with an Independent Agent.  An Independent Agent has the ability to quote your insurnace with multiple carriers to find the best fit for you with a reputable insurance carrier.  There is nothing wrong with the agents who work for Captive Insurance Companies.  The problem is they have only one insurance company to offer you, and when you no longer fit into their perfect little box it will become financially painful.  There are multiple Independent Agents in your town that can offer you a wider selection than the local captive agent. 

Most importantly, be a safe driver.  Don’t use your phone, don’t do your makeup, don’t eat a bowl of cereal, or do anything else that will take your eyes off the road.  It only takes a split second to change lives forever.  Please make a conscious decision to drive responsibly. 


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