Why Did My Auto Insurance Company Raise My Rates?
Maybe you’ve had this auto insurer for a while now and everything seems great. You haven’t encountered any issues in terms of communication and when trouble does happen, they come alive to their responsibilities quickly. All of a sudden, you discover that your auto insurance rates have risen through the roof! What could be wrong? Is there anything you can do about this? How about deciding between the ideal insurance providers for your car?
Hi there! I’m Stella, Fincrew brand ambassador, we’ll find out all the possible reasons for your premium spiking out of the blue! Unravel the secrets behind auto insurance in Malaysia and leverage this knowledge to make better decisions with your insurance through our Insurance360 Video Series! These videos focus on making automobile insurance easy for every vehicle owner. Join our ever-growing community by clicking on the Subscribe button. Also, turn on your notification settings so none of our updates slip past you! While several variables can cause your auto insurance rates to spike without warning, here are the most common culprits.
Culprit #1 — Providing Inaccurate Information On Your Policy Application
Several severe consequences might come about due to your filing mismatching information on your insurance application form. In addition to the possibility of having your coverage completely withdrawn, it could cause your premium rates to increase. For example, let’s assume you own a 2016 Mazda CX but through an oversight on your part, you filed 2014 Mazda CX. You would likely enjoy the cheaper rates that an older model affords you until your insurer discovers the error. This will cause them to promptly review your insurance rates accordingly.
Culprit #2 — You Relocated
You might be surprised to discover that what you pay as auto insurance can vary rather drastically from one state to another. One reason for this is the varying traffic statistics of each state. The more populated a location is, the higher the risk of auto crashes associated with it. So if you recently moved to a more urban or commercial location, that might be the reason you have to pay more for your coverage.
Culprit #3 — You Recently Got In An Accident or Traffic Violation
If you were recently involved in an accident and was adjudged to be the at-fault party, then, you have just successfully pinpointed the reason for the hike in your insurance rates. With auto insurance, you are considered high risk if you make at-fault claims regularly.
The same is true if you are caught with traffic law violations such as over-speeding or driving under the influence. Your insurance interprets this as an increased liability and will review what you pay as coverage to compensate for the new development.
Culprit #4 — Your Discounts Or Bonuses Are No Longer Valid
Discounts play a big part in reducing what you pay for auto insurance. So, should you forfeit one or more of these, your premiums might increase.
There you have it–the reasons why your insurance provider might raise your insurance rates. Want to find out more causes for the rise in your premium rates? Or know more about other insurance buys and tips? Then, don’t forget to subscribe and enable notifications for our channel! See you next time!