Why Do My California Insurance Rates Keep Going Up?
We hear this question often.
Every year, insurance rates are on the rise, especially when it comes to auto insurance. This is because of continual shifts in the population, young drivers entering the roadways, more traffic—which leads to increased accidents, and an increase in the number of claims. All of these factors come together to make the perfect equation for a rise in insurance rates.
Filed claims and accidents make for an automatic rate increase at the time of policy renewal. If you add a driver or vehicle to your policy, your rates will rise midterm. However, it’s important to note that even if you have no new cars or drivers and have a clean record, your rates will still increase due to the fact that insurance companies need to surge costs to cover what they are paying out.
There are few factors in which homeowner’s insurance increases, but this is mostly on a case specific basis. For example, as you continue to invest in your home, it’s value will rise. As a result, your coverage will need to increase to protect this additional worth. Also, if there are claims issued, your rates will be raised.
Auto insurance will never decrease. This is especially true in the state of California, which is known for being an exceptionally litigious state. But despite this reality, there are still a number of ways to save.
1. Work with an independent agency. Here at i80, we work with several different providers. If we notice your rates are increasing, we have the option to shop around and find you the best deal.
2. Note your mileage. If you carpool or don’t put many miles on your vehicle each year, it’s important to let your insurance company know. Having less mileage can mean a lower rate.
3. Be a good student. If you have young drivers in your home, take advantage of the good student discount. Drivers who maintain a specific GPA are eligible for lower insurance rates for doing well in class.
4. Go for a multi-policy. If you already have auto insurance, look to pair it up with your renter’s or homeowner’s insurance. Often, having more than one policy through the same company can get you a decrease in monthly payments.
If you have more questions about your insurance, I’d love to help you save while providing the best coverage for your needs. Give me a call today!
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Contact i80 Insurance
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