Why is my Car Insurance renewal so expensive?

Imagine this. You are going through your piles of bills, trying to calculate how to make ends meet. Then, the renewal bill from the Auto Insurance company arrives, and lo and behold it’s a lot higher than what you are currently paying. What is up with that? 

There are many reasons it may have increased, and it may be time to shop for a different insurance company. An independent insurance agent represents multiple insurance companies and programs so can shop for the cheapest rate if the company you are currently with goes up. Star Nsurance is an independent insurance agent serving the Tampa Bay Area and the entire state of Florida. We will do our best to find you the cheapest Car Insurance policy.  Call us anytime 813-563-5577

If your renewal premium went up it may pay to take a few minutes to talk to your current agent to see if there is anything that can be done. If you current agent can’t get the rate lower, it may be time to shop elsewhere. Below is some information about how renewal car Insurance rates are determined and some specific reasons why your renewal may have gone up, and what you might be able to do about it. If any of them apply to your situation, its best to talk to your current agent or Insurance company to find out if anything can be done to help make your Car Insurance rate cheaper. You can also read more about Car Insurance rating factors HERE

While switching your coverage too often may be detrimental, comparing quotes at least annually can allow you to compare pricing and coverage options. Star Nsurance offers free quotes 6 days a week. It never hurts to shop! Call us today 813-563-5577

Did you add a new vehicle recently? 

Insurance companies use a variety of rating factors in order to establish the premium they charge you including charges specific to the year make and model of your automobile or truck. The insurance company that was cheaper when you had your old car, may not be the cheapest for your new vehicle. If your current carrier surcharges the model of vehicle you added, it’s time to check other insurance companies.

Did you have an accident, ticket, or insurance claim recently?

Most insurers will raise your rate if they pay a claim, and the increase can be substantial. Ask your current agent if he represents another insurance company who won’t surcharge your rate as much. The insurance company that had the best rate when you had no tickets or accidents is sometimes not going to be the cheapest if you have an accident. If your current agent does not have a better rate, it may pay to shop with another agent.

Did you add a young driver onto the policy recently?

Policies are rated based on the age and experience of the drivers. If you added a youthful driver to the policy recently, your rate may have gone way up. Insurance companies do not surcharge youthful drivers the same, however. Additionally, some insurance companies offer discounts to help get that high rate down on youthful operators. Ask your agent if your youthful operator qualifies for any of these discounts or statuses.

  •  Good Student Discount – for young drivers attending school full-time that maintain good grades 
  • Driver Training Discount – for young drivers who complete an approved driver training course
  • Occasional Operator Status – for young drivers who are not the primary operator of any vehicle.
  • Permit Rating – for young drivers who are not yet licensed  but have their learners permit
  • Distant Student Status – for students away from home that only use the covered vehicles occasionally.

Did you recently move?

Auto insurance rates are based in part on where you live. Some insurance companies even have different rates among zip codes within the same town or county. We have seen drastically different rates sometimes for clients that may only live a few blocks apart, but have different zip codes! The insurance company that offered you the lowest rate when you lived on the north side of town, may not have the lowest rate if you’ve moved to the south side. If you have moved recently to another town or another zip code, it may pay to shop. Additionally, if you have recently moved to the beautiful state of Florida, you may expect sticker shock when switching over your Car Insurance. Though cost of living is low here compared to the national average, our Car Insurance rates are one of the highest in the nation. See below chart explaining the average rates for the largest cities in Florida, (including Tampa), and how they compare to the national average. 

Finally, the high rate may have nothing to do with you individually! There are a number of factors that can cause your insurance rates to increase, many of which are outside your control. These factors include:

  • Cost of operations
  • Number of drivers on the road
  • Where you garage your vehicle

One of the largest factors is the cost of operating an insurance company, which continues to increase as more insurance policies are issued, more claims are filed, and more employees are needed to manage the workload. The insurance providers have to charge enough in premiums to manage their business while paying out all valid claims.

Another factor that you cannot control is the number of drivers on the road. While more drivers mean more policies and more business for insurance providers, it also means more opportunities for an accident or claim situation. These drivers may not be experienced or may not be operating a safe vehicle, or in some instances, they may not have valid insurance. All of these factors can lead to an increase in your premium rates.

Even factors like where you live and where you garage your vehicle can influence your premiums as well. If you live in an area or store your vehicle in an area prone to vandalism or theft, your rates may increase to offset any potential losses.

Remember, just because your current insurance company raised its rates doesn’t mean that another insurance company won’t offer you the same or a lower rate than you had. Most agents and companies offer free quotes. Take a few minutes and see if you can’t find a lower rate. Not all policies are the same however, so make sure you understand what coverage you have and what coverage is being offered, and make sure you deal with an agent you can trust. Here at Star Nsurance, we offer free quotes. Take a few minutes and see if we can find you a cheap rate. Call us today. 813-563-5577


Contact Star Nsurance today to get a FREE insurance quote.

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