Why Did My Premium Increase when I Haven’t Had a Claim with My Insurance Carrier?

With your car insurance policy, there can be several reasons why your insurance premiums increase. Even if you have not had a claim, the insurance carrier may increase your rates without any obvious reason. As an insurance agent in Laurel, Maryland, I have seen a number of items that can make a difference in your monthly premiums.

According to The Motley Fool, there are five primary factors that affect auto premiums:

  • Age
  • Driving Record
  • Location
  • Type of Vehicle
  • Discounts

Certainly, some of these factors can be multi-faceted. For instance, daytime running lights, good student, multiple policy, and safety discounts can be found in the final area. Kira Botkin of Money Crashers adds other factors, such as marital status, credit score, profession, and specifics – such as age of car and the likelihood of theft (this is related to location) – as further dynamics within the “type of vehicle.

In other words, there are several potential reasons why your insurance carrier could hike your rates – without the mention of a claim.

The best way to follow-up on such a notice is to contact your insurer. Call your insurance agent or company directly to ask why your premiums have been increased. However, be wary of your company/agent trying to reduce your coverage to make up for the price change.

You have several options. Perhaps there is a discount that is not reflected in your policy. Or, you could consider altering your coverage to make your premiums more affordable.

Inevitably, you may need to consider comparing car insurance to determine what the market looks like. This certainly won’t hurt anything – and could lead you to a better policy. It is advisable that you do this on a regular basis (every six months is a good rule of thumb), to make sure you are receiving fair market price.