Most insurance companies will not raise rates by a large amount on your car insurance premium if you are a reliable customer with no incidents on your record. If you receive a large increase on a renewed policy and do not know why there are a few things that you should do immediately to protect yourself and your wallet. You need to discover why the increase happened. Call your provider right away to speak with your insurance agent or customer service representative. Until you know the full facts, can you know how to proceed?
If you know that you have no reason to receive a large premium increase you can start getting quotes from other insurance companies. If you have been a customer of the same insurance company for a few years you may find that you can see a significant different by switching to a new company.
Your current company may have incorrect information listed in the system on your driving history. You need to get a copy of your driving record from your local DMV office to send to get them to correct their information. If there is also an error on your DMV record you will need to get this corrected before you deal with the insurance company. Until this gets fixed it will not matter if you change companies your rates will still be high.
Another reason for a larger car insurance premium on your renewed policy can be because of a state mandated increase. As the price of providing coverage increases due to higher costs for medical care and the price of automobiles, state governments enact laws to raise the minimum that a driver must have. This will affect all drivers whether or not they have decent driving records.
Many states used a person's social security number as the identification number on their drivers license. Because of the increase in identity theft and ease of which a person can obtain information this was changed. The result was that your insurance provider no longer had access to your driving records. Without this information they would charge a larger than normal premium as an incentive to get the new information. If you provided the information to them they would recalculate your rate. If you get a new driver's license number make sure that your insurance company is made aware of the new number to update their records.
Your car insurance premium is affected by your driving actions. A renewed policy increase that is given to someone with no reason should be inquired to the insurance company. It could be the result of human error, state mandate, or missing information.