Blog Why does my car insurance increase at renewal and what can I do about it?

Why does my car insurance increase at renewal and what can I do about it?

Written by Beth Maggio—Administrative Assistant

June 25, 2019 · Personal Lines, Car Insurance

"Why did my car insurance premium increase at renewal, I have not made any changes or had a ticket or accident!" This is a question insurance agents receive all the time. When the cost of car insurance goes up at renewal, the increase can feel unjustified - especially if you have been insured with the company for a long time and have not had any tickets or accidents. There are two important things to keep in mind. First, premium increases are affecting drivers across the country for a variety of reasons. Second, there are things you can do to reduce any premium increase you receive.

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Phone: (601) 636-5560

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Why are car insurance companies raising rates?

Worsening traffic. Increased population, higher employment rates, and lower gas prices lead to more vehicles on the roadways. When more cars are on the road, the frequency of accidents inevitably increases.

Distracted driving. Talking or texting on cell phones, using vehicle navigation systems, even eating or drinking while driving will take a driver's attention off the road.

More claims. Statistics point to increasing frequency and severity of car insurance claims.

Rising costs. The cost of repairing vehicles is more expensive. Newer cars have advanced technology such as blind spot detection, forward collision warning, and backup cameras that is more expensive to repair.

How Can I Lower My Car Insurance Premium?

Above all, drive carefully. Observe traffic rules and speed limits. This is the best way to lower your car insurance cost. There are also many immediate solutions to lowering your car insurance premium:

  • Work with an independent insurance agent. There is no one-sized-fits-all solution when it comes to car insurance. Independent agents work with a number of different insurance companies. This means we can find the best combination of price and coverage for you.
  • Choose a higher deductible. By selecting $1,000 comprehensive and collision deductibles instead of $250 or $500 deductibles has its benefits. First, you benefit from a lower premium (the higher the deductible, the lower the premium). Higher deductibles also keep you from turning in small claims. When you turn in a claim, you may lose your claims free discount.
  • Enroll in a company's telematics program. Insurance company telematics programs, like Safeco RightTrack, State Auto 360 Telematics or Progressive SnapShot, are becoming more and more popular. These programs collect information about how you drive, how much you drive, and when you drive. Your safe driving habits can help you save on car insurance - in some cases up to 30%of the premium.
  • Bundle and save. Most insurance companies offer a multi-policy discount when you insure your home and auto with them. This discount can be as high as 25%. In addition, bundling your insurance with one company also simplifies billing, streamlines claims, and helps eliminate coverage gaps.

How Can We Help You

Hennessey, Thames & Leavit Insurance Agency in Vicksburg, MS is here to help. As independent insurance agents, we represent many companies, including Met Life, Safeco, Travelers, Progressive, State Auto and Kemper.

We can be reached by phone at 601-636-5560, email: Check us out on Facebook or our website