Buying a home or auto insurance policy can seem daunting, but its worth it. When things go wrong, you want to make sure you — and your assets — are protected. In the end, insurance can help bring peace of mind. But after going through the insurance purchase process, you may see your home or auto insurance rates increase.
Its pretty common. Later on down the line, your rates increase. This can be frustrating and confusing. You put in the work, did your research, and decided on a policy that met all your needs. Now, youre looking at the bill and youre not sure why its suddenly more expensive than what your original commitment.
If the price of your home or auto insurance has gone up, there are a few things you can do to help bring the price back down within your budget.
Understand Why Home or Auto Rates Increase
Simply understanding why your rates have increased can make a world of difference. If you cant think of any reasons why your rate would have changed, consider these common factors that lead to higher prices in home and auto insurance policies.
Home Insurance Price Increase
If youve filed a claim recently, its likely this was the reason your insurance rate went up. If that wasnt it, check your credit score. Credit scores often help insurance companies dictate their customers rates, using a special insurance score*. A decrease in your credit score could lead to an increase in your policy price.
Additionally, your home insurance price could have gone up due to an external factor. Sometimes insurance companies send inspectors to assess the home before the policy can be renewed. If the inspector determines that your home could use some upgrades, this might be reflected in your home insurance premiums. Other times, the cost of construction industry-wide simply goes up, which may mean that homeowners insurance rates increase as a result.
Auto Insurance Price Increase
Auto insurance rates often seem to increase quite easily. Of course, there are a few obvious reasons why your rate might have gone up. Your claim history, being involved in an accident, or a moving violation such as a speeding ticket can cause car insurance companies to increase your rates.
However, if none of these are the case, there are other less-obvious reasons. For example, moving to another zip code ‑— even across town — can make you and your car more expensive to insure. Adding or removing drivers to your policy, a change in your employment, or even frequent natural disasters in the area can also increase your car insurance rates.
Minimum coverage limits and liability coverage are often set at a state level. Changes in these regulations could also be responsible for higher car insurance premiums.
Make A Phone Call
Sometimes, when your insurance price has increased, its easiest to make a phone call. By calling your insurance company, you can speak to an agent about your policy and your rates. The insurance agent should be able to explain the price increase to you. You might even be able to negotiate and continue receiving your previous rate.
While speaking with the agent, ask about steps you can take to bring your insurance rate back to a more agreeable price. If your insurance company wants to maintain your business as a customer, your agent should be more than happy to discuss this with you.
Ask about potential discounts to help you save money on your policy going forward. Bundling home and auto insurance policies is one common discount that most insurance providers offer. You also could find out how the addition of safety features to your car or home can help decrease your risk in the eyes of your insurance company, leading to lower rates.
Talk with your agent about how paying a higher deductible would impact your monthly premium. Remember, your deductible is what you pay out-of-pocket when you file a claim. If you would feel financially able to pay that higher deductible in case of emergency, this is another way you could save on your monthly costs.
Re-Shop Your Rates
After speaking with your current insurance company, you still may not feel satisfied with the options available to you. At this point, its a good idea to re-shop your insurance rates. In fact, its suggested that insurance policyholders re-shop their rates every six months, or every year at a minimum.
Why? Because it could lead to big savings. According to Yahoo! Finance**, customers who re-shopped their rates saved between $363 and $2,182 annually on home or auto insurance.
Once you have chosen the insurance providers youre most interested in, you can work with agents at each company to discuss available policies. However, be aware that these agents will only give you information about their own company and will not be able to help you compare amongst multiple insurance providers.
Let SelectQuote Do the Work
If you want to compare rates and policies amongst multiple insurance providers — and be certain that youre getting your best policy for your best price — turn to SelectQuote.
Our qualified agents are independent, which means theyre working for you rather than pushing you toward a specific policy at a specific company. SelectQuote agents shop around, comparing policies from multiple trusted insurance providers to find you a policy that meets all your needs.
Ready to get started? Its easy to get your free, no-obligation quote today. Contact us or call 1-855-334-6398.