Help! Why Are My Car Insurance Rates Going Up?

Each time your car insurance policy is up for renewal, drivers all across America hope not to see their auto insurance policy rates raised. There are many reasons why insurance companies raise your rates. In short, it is the cost of doing business.

Do not think having a clean driving record makes you immune to insurance rate hikes. Major car insurance companies do raise rates of good drivers to compensate for increasing expenses. There are rate factors you can and cannot control.

Rate Factors You Can’t Control

  1. Medical Costs – States have a minimum required level of bodily injury liability coverage and are the maximum amount your insurance company will pay for medical costs in the event of a car accident. Because medical expenses are increasing, these increases are being passed on to the customer’s car insurance rates.
  2. Repair Costs – States also require that drivers carry minimum property damage liability. Your insurance company will pay for damages to the other driver’s vehicle or property. The growing cost of labor, materials, and repairs is another way insurance companies raise rates.
  3. The Insurance Information Institute estimates 13 percent of drivers are uninsured. If your state does not have a law in place protecting you from uninsured motorists, insurance companies must go through legal processes to settle these claims.
  4. When drivers engage in insurance fraud by faking injuries or using false information on their applications, it not only cheats the insurance claims process it contributes to rate increases. Insurance companies pay out significant amounts of money to pay out fraudulent claims.
  5. No-fault insurance compensates drivers for damages regardless of who was at fault. While no-fault insurance was intended to simplify the claims process, it leads to higher levels of fraud and increased costs passed onto the insurance companies and their customers.

Rate Factors You Can Control 

  • We all know how important our credit score is. But did you know your credit history is factored into your auto insurance rates? It can have a more substantial impact on your auto insurance rates than your driving history does.
  • Filing claims against your policy. It is safe to assume your auto insurance rates will rise when you file an accident claim regardless of the severity or who was at fault. It makes sense to pay for minor accidents out of pocket.
  • There are specific events to avoid if you want your auto insurance rates to stay put. Speeding tickets and minor accidents affect your auto insurance rate: tickets, minor accidents, and DUI’s last on your record for three to five years. Most insurance companies offer discounts on auto insurance policies. Clients can lose automatic payments, paperless billing, bundling, defensive driving courses, and multi-car discounts without even realizing it.
  • Remember to change expired credit cards or input new card information to avoid any late payments. Frequent late payments can result in rate raises and possible cancellations. The excellent news: late insurance payments will not affect your credit score.
  • Living in certain cities or neighborhoods may make insuring your car less expensive. High rates of theft, crime, and accidents can cause auto insurance rates to jump.

Steps You Can Take To Keep Your Insurance Rates Down 

  • Periodically, ask Michael Gordon to review your policy for potential discounts.
  • Bundle multiple insurance policies with The Gordon Agency.
  • Take steps to improve your credit score.
  • Add safety features to your car. Anti-theft and anti-lock brakes can translate to lower auto insurance rates.
  • Autopay, pay your bill in full and opt for paperless billing, and you may earn a discount.

The Gordon Agency

This is the home of Florida’s Insurance Professionals. We are a multi-line independent agency that provides insurance solutions for personal and commercial lines—combining decades of relationship building with motivated licensed insurance agents to provide coverage options for all of your insurance needs. Our team of agents relies on our education, integrity, experience, and attention to detail to accurately assess each opportunity and offer optimal solutions for all of our clients. We are dedicated to matching the right product for every situation, always at the best price available. Call us at 561-988-3330, visit our website or paste our address in your browser

The Gordon Agency Inc.
1825 NW Corporate Blvd Ste 110,
Boca Raton, FL 33431
(561) 988-3330

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