Understanding Insurance Adjustments

What To Do When Your Auto Insurance Rates Keep Going Up

Well it's that time of year again, and in the mail or through an e-mail, you receive your invoice for your auto insurance. When you open up the correspondence, you are once again notified with the deflating news that your insurance rates are going up.  After experiencing a variety of emotions including anger and a feeling of helplessness over your predicament you begin to seek your revenge.  You determine once and for all that you are tired of being at the mercy of your insurance company and you want to do something about it. You are ready to take action.

Analyze the Insurance Policy

The first action step that you can take is with your current insurance provider. The best thing to do once you have been notified that your premium is increasing is to contact the company and find out why the premiums are increasing?  The premiums may be increasing due to a legitimate reason based on the fact that maybe you had a traffic violation or accident. Additionally, the rates may be increasing due to the geographical area in which you live and that it is a high risk area for drivers.  Or simply it is a rate hike due to the normal increase in conducting business.

Possibilities of Decreasing Your Premium

After the company has provided their answer in response to your question of why your premium has increased, the next action step would be, if you wish to stay with this company, on how to reduce your premium. This evaluation of your current policy can take into account your terms of liability, the mileage that you annually drive, a recent successfully completed safety driving course, etc. Therefore, if you wish to increase your liability threshold or you have reduced the mileage that you drive in a year or you have completed such a course you can ask that the company take this into consideration and lower your premium.  Another option decreasing the premium of one's auto insurance is to bundle other insurable possessions together.  For example, by including home, renter's or condo insurance into your current auto insurance provider's plan you may be able to reduce your auto insurance premium.

Shop Around

Finally, if you as a customer of the automobile insurance company are not satisfied, you have the option of going with another company. However, it is important to maintain your insurance coverage as you begin to shop around for a new provider. There are several ways that this "shopping around" can be accomplished. First, you can ask your family and friends and businesses associates, by comparing apples to apples, about their insurance costs and their insurance provider.  Another powerful way of comparing insurance companies and the cost of doing business is by using online rate comparison tools, checking customer satisfaction, and examining other benefits of the various insurance providers.

Contact an agency, like LA Insurance, to get started.