Why Did My Rates Go Up No Accident or Ticket?
Sadly, it’s quite possible for your rates to increase even if you haven’t had a ticket or an accident. Insurance rates are determined by “pooling” a large number of people with similar factors or characteristics. Once these pools are created, a rate is assigned to the group (basically an educated guess based on losses the insurance company had to pay in the previous years).
The insurance company’s goal is to charge the group enough money to cover the costs of all the accidents they expect the group to have. Whether or not the insurance company is correct cannot be determined until a few years after the policy term expires.
Much of the delay can be attributed to the fact that many of the expenses for losses incurred by the insurance company are tied court costs. And as we all know, lawsuits often take a number of years to settle. That’s why insurance companies generally offer to settle claims outside of court.
If you have not had an accident or received a ticket and your rates still rise, it may be time to shop around with a different insurance company. If you have an insurance agent, call your agent and ask him to “shop” your rate with additional carriers, or attempt to find discounts your insurance company may have available for you.
If you do not have an agent, but instead work with a direct insurance carrier, call your insurance company and ask for available discounts, or call other direct insurance carriers for a quote.
Insurance companies typically review your history for accidents and tickets on a three-year timeline. It is always worth the time to call your insurance agent or direct insurance carrier to request accident or ticket forgiveness. Typically it is more common to have a ticket forgiven rather than an accident.
For example: If you’re beginning a new insurance policy on September 1, 2008, and received a speeding ticket on November 15, 2005, it’s certainly worth requesting that the ticket be disregarded when determining your rate. Remember, it never hurts to ask!
