I hear it day in and day out “My auto insurance company raised my rates again" and here's why. Every year, and sometimes more, insurance companies are required by State law to file their rate charts with the State department of financial services for different classifications of insured’s. These rates are used by the State to keep insurers in check when they charge certain rates for different classifications of insured’s these classifications include location, age, gender, credit score, driving record and more. Once the insurance company files their rates they cannot deviate from them until they file a new rate chart for different classifications. That’s why when you get a rate hike there is no way an insurer can lower your rate legally. The insurance company by law has to charge the same rate for all that fall into each classification.
There are hundreds of different combinations classifications and when an individual insurance company sees they can make a profit from a certain large group they will raise the rate to that group and bleed it for profits. You may get a quote from a different insurer that’s better than your current company but at some point the insurance company bean counters will hit you again for profit. They move from one classification to another consistently vacuuming up your dollars.
My suggestion to all is to get with multiple independent and captive insurance agents and have them run your rates on at least a yearly basis, every six months would be better as a good portion of policies are only six months. The insurers are counting on you not doing your due diligence, Shop around you will be surprised the money you will save.
Copyright 2015 Keena's Inc. All Rights Reserved.