Why did my rate go up? This is probably the question I get more than any other. Did you have any claims? Seems like a simple answer, but most don’t realize that every claim you file has an impact. This includes towing, Glass claims, not at fault accidents. If the answer to that question is yes, then you probably lost a claim free discount or were placed in a higher tier. Call it whatever you want. In today’s day of multi-variant rating, if one variable is changed, the rate changes.
So what if the answer to the claim question is no? Then the insurance company may have changed it’s rate. They may have discovered a statistic regarding people with a certain set of factors that tend to have higher incidents of claims. Say you only have state minimum limits, only one car on the policy, and one driver. Doesn’t seem like you did anything wrong here. Not to the insurance company. They are starting to charge more in this situation.
So what do you do about it. Shop for a better rate. Sure ok. First question: How is your credit? #1 factor in determining your rate. #2 factor is length of prior insurance without a lapse. #3 proof of prior insurance limits. Some companies are punishing people who have less than $250,000 per person/$500,000 per accident/$100,000 property damage. CT State minimum in 1972 was 20/40/10. You could buy a nice house then for $20,000. In 2018 the state in it’s infinite wisdom raised the minimum to $25,000/$50,000/$25,000. Why so little? The answer is that poor people can’t afford to pay for coverage that they should have. So you pay more for your uninsured/underinsured motorists coverage.
So who gets the best rate? People who come from their prior carrier with whom they have been with for over 5 years with limits of 250/500/100. They are claim and violation free for 5 years (some companies only go back 3). They are married, with multiple vehicles, multiple policies (home and umbrella and jewelry) with the same company.
Give me a call and we can discuss your situation. 203-758-6647 ext300 or email me email@example.com