Why did my car insurance rates suddenly double?

Question

I am almost 40, have a spotless driving record, have the same car, haven't changed the policy, and haven't moved. So how can my insurance agent just up my rates all of the sudden and not give me an answer why. He just says that things change. Is there an industry standard or can agents just screw with us at will? I have been with this WELL known insurance company for 4 years. This isn't some guy working out of his garage. Any experts out there that can shed some light on this for me. I am shopping around for new insurance as i type.

Answer 1

There are a few reasons for rate changes:
You may have had some glass losses, towing losses or vandalism losses in the last 3 years that changed your tiering. These do not affect your driving history but are claims on your record.
The company took a rate increase because they have had a lot of claims in the last year or two. The agent doesn't change the rates, the company does & they have to file the new rates with the state and get them approved before they can be changed.
The company may have started insurance scoring - which means they look at credit as one of about 100 different factors to rate the policy. No one knows exactly what all of the factors are & different companies use different models so one company's factors are different than another one. They may have not been able to do the insurance score because they probably need your permission to do so. You may have been rated with a "no hit" or a "declined" insurance score which probably not as good as a "good" insurance score. Your agent should at least be able to tell you this part. If he does not, get another agent that understands this - well, none of us REALLY understand it, we can sort of explain it. I know of someone that got an excellent insurance score that has had a bankruptcy on her record in the last 7 yrs & I know of people that have good or average insurance scores that have had perfect credit, so you really never know.
When you shop for insurance, call an independent agent, they can really advise you on coverages, what you need, etc & quote with many different companies to compare for you. They will compare apples to apples. If you quote different companies online, unless you are pretty insurance savvy (most people are not, even some lawyers & accountants I know!), you may be quoting different coverages.
Good luck to you & I would definitely shop as you are doing.

Answer 2

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RE :Why did my car insurance rates suddenly double?
I am almost 40, have a spotless driving record, have the same car, haven't changed the policy, and haven't moved. So how can my insurance agent just up my rates all of the sudden and not give me an answer why. He just says that things change. Is there an industry standard or can agents just screw with us at will? I have been with this WELL known insurance company for 4 years. This isn't some guy working out of his garage. Any experts out there that can shed some light on this for me. I am shopping around for new insurance as i type.
Follow 13 answers

Answer 3

I recommend you this site to get quotes -http://HELP.COVERAGEQUOTES.NET/-zzpijWU444

RE Why did my car insurance rates suddenly double?

I am almost 40, have a spotless driving record, have the same car, haven't changed the policy, and haven't moved. So how can my insurance agent just up my rates all of the sudden and not give me an answer why. He just says that things change. Is there an industry standard or can agents just screw with us at will? I have been with this WELL known insurance company for 4 years. This isn't some guy working out of his garage. Any experts out there that can shed some light on this for me. I am shopping around for new insurance as i type.

Answer 4

OK.. the agents don't set your rates. They have no control over your rates. Therefore, stop blaming your agent.

Rates are set up the underwriting department. They have a set standard and your rates are based on how you fit in the standard. They don't know you - it's not personal.

Has your credit rating changed - gone down? If so, this can cause your policy to be moved from a preferred policy to a non-standard. Did you have a homeowners policy that you concealed causing a multi-policy discount to be lost? Did you purchase a new car?

Sometimes, insurance companies file for a rate increase and it takes affect. This could have happened.

About the only thing you can do is shop around and see if you can get a better rate somewhere else.

Answer 5

"Things change" is a crappy answer. You need a new agent.

There are a few things that could have happened:

1. the company took a rate hike
2. your territory (garaging area) took a rate hike
3. your company has implemented credit scoring for existing customers, and your credit score isn't very good
4. you have a 16 year old kid that just got licensed? But I think you would have mentioned that.

In any case, when you call to ask about a rate increase, "things change" is NOT a good answer. It's a LAZY answer, from an agent that either doesn't care, doesn't KNOW, or doesn't want to discuss it with you. ANY of these reasons is a good reason to fire your agent.

Answer 6

Some (read a LOT) of insurance companies are running a CREDIT SCORE and have started doing this on renewals. It could be that your prior policy years "slid thru" and now, you are being "re-underwritten".

If your agent can't come up with a better answer for you than "things happen", I'd change to a different agent. Find you a local independent agent that has several different companies and let them check for you.

Good luck and hope this helps!

Answer 7

1. They are lazy and not looking for the best rates for you and are just following the industries guidelines.

2. Rates are based on statistics involving a person's experience and situations. For instance, some vehicles cost more to repair than others, some are more likely to be stolen and, according to statistics, some are more likely to be involved in accidents.

Some people drive many more miles than the average, increasing the likelihood that they'll be involved in an accident. Other drivers have very little annual mileage, decreasing the likelihood of an accident.

The more you are on the road, the higher your chances of being involved in an accident. The same principle applies to commuting.

If the majority of your driving is spent in commuter conditions (increased congestion, people rushing to get to work, inattention due to familiarity with roads) you're more likely to be involved in an accident than someone who is traveling in off peak traffic hours.

3. But mileage is not the only factor in determining rates. Rates are also based on age groups and the statistics which show the likelihood of accidents within these groups. Statistics show an increase in the number of accidents per miles driven for those over age 75, which results in a higher rate. However, some companies do offer a discount to older policyholders who limit their driving.

4. Statistics show that those who have a number of not-at-fault accidents are more likely to continue to have accidents. Also, at some point consideration must be given to whether the driver involved in the not-at-fault accidents is contributing to the cause of the accidents.

HOPE THAT THIS HELP YOU AND GOOD LUCK

Answer 8

Check your rates with another broker. Some years back, my brother's broker retired, and he got his renewal through a new office, with a huge increase in rates. My brother phoned and blasted them, and they said his rate went up because of his claims record. What claims, he demanded to know. Well, there was the glass claim on one car, the theft loss, the at-fault accident his wife had, and the accident his son had. This floored my brother needless to say, because he hadn't had a claim, ever. He demanded they adjust his rates immediately, or he was not only moving but calling his lawyer and starting a lawsuit.
It turned out his old broker kept poor records, which was the reason he "retired", he had his licence suspended. Nobody ever told my brother whose claims those really were, but they did take them off his record.

Answer 9

It wouldn't be the agent that sets the rates. I would call the company and ask them what gives. Maybe they were one of the many that have taken big hits from the disasters like the recent fires in California and such. They do tend to raise rates to help offset the huge losses.

Answer 10

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