Ever wonder why your insurance bill keeps going up, even though you haven’t changed a thing? You’re not alone! Insurance rates can be a mystery, but this guide will shed some light on the reasons behind them and show you how to fight back.
Understanding Your Insurance Score
Think of your insurance score like a credit score, but for insurance. It considers your credit history, driving record, claims history, and even where you live. A lower score can mean higher rates. So, if you’re confused about a rate hike, check your insurance score first (it’s usually on the declarations page of your policy).
Who You Insure Matters
Adding or removing drivers from your policy can affect your rates. Even if someone in your household has their own insurance, there might be times when they need to be on yours. Understanding these situations can help you avoid coverage gaps and save money in the long run.
Your Zip Code Can Change the Game
Insurance companies are starting to use “territories” instead of zip codes on their maps to make sure everyone pays a fair rate. This means your zip code could suddenly be in a different zone, which could affect your premium. It’s a good idea to stay updated on these changes.
Keep Up with Product Changes
Insurance companies are constantly changing their policies. Sometimes these changes might be exactly what you need, but other times they might not. Make sure you understand how any updates affect your coverage and explore other options if needed. Your agent should be connecting with your on each renewal to discuss any changes and updates that may have occurred.
Inflation: The Silent Culprit
Inflation isn’t exactly a secret, but it’s a major reason insurance rates go up. From car repairs to medical bills, everything costs more these days, and insurance companies have to factor that in.
Fight Back: Shop Around, But Be Smart
Now that you know why your rates might be rising, it’s time to take action. Getting quotes from other companies can save you money, but don’t just go for the cheapest option. Make sure you’re getting the coverage you need. If you’re not already insured with Valor Insurance Group, you may want to give them a call. They have the ability to shop multiples companies at once so you don’t have to call around.
Discounts Are Your Friend
Bundling your home and auto insurance can save you money. There are also discounts for things like good driving habits, memberships in certain groups, and even using telematics (devices that track your driving). Let your agent know of any organizations you’re part of to see if they have any affiliation with a discount.
Knowledge is Power
The key to managing your insurance costs is understanding how they work. By learning about the factors that affect your rates and taking proactive steps, you can take control and get the best coverage for your budget.
