If you have an auto insurance policy with GEICO or Allstate, you’ll want to keep an eye on your next auto insurance renewal. Both companies have recently announced rate increases. Although insurance companies increase prices from time to time for various reasons, which we discuss below, there’s always a chance to save money.
With the economy improving month by month, the unemployment rate continuing to decrease, and gas prices trending lower, there’s more drivers on the road. This activity ultimately increases the likelihood of claims. As those claims continue to increase, insurance companies have to raise rates to balance the loss ratio.
Although we can come to a general consensus that increased driving activity will lead to increased claims, auto insurance companies have statistics on their side. Each company has actuary departments that plot, plan and prepare for losses. When these losses exceed expectations, companies have to adjust to meet the bottom line.
Your auto insurance renewal typically arrives 45 days before your current expiration date. This will give you enough time to compare multiple providers and make sure that your rates remain competitive. Keep in mind that other factors from the previous six months to a year may increase your rates regardless, like tickets and accidents.
QuoteAgents offers a new streamlined quote service that allows you to compare rates with one application and sign up for new auto insurance immediately. We recommend comparing your auto insurance rates at least twice per year.