If you’ve recently found yourself asking ‘why did my car insurance go up for no reason,’ rest assured that you’re not alone. It’s no secret that driving on the roads in the United States can be an expensive gesture, but with so many vehicle insurance agencies to choose from; there’s no reason why you should stick with one that overcharges. But that doesn’t explain why sometimes (and often inexplicably) the cost of your premiums could go up.
Why Did My Insurance Jump Up For No Reason Exactly?
There are so many reasons that could have led to your premiums increasing. But the fact that they may have increased without explanation is what has many people in your position concerned. There’s nothing worse than making no claims, being involved in zero accidents, and having met all of your payments on time – only to find that you’re slapped with an extra cost to your policy. Well, the main reason for this is often market fluctuation.
What Is Market Fluctuation?
In a general sense – all markets are governed by the consumer. What this means is that when the demand is high and many people invest in a certain product or a service, the cost for this service can decrease because businesses are more than able to cover their expenses. So, when your insurance premiums go up and there’s no rational reason why – it will typically be the choice of the agency that you are with.
Perhaps they made a loss that year and need to be able to offset their profits by charging more to their customers. Or maybe they decided that their prices are too low for the market and want to raise them to remain competitive. Whatever their reasoning might be, the chances are that you will be just one driver of many thousands that are being affected by the price rise.
What Can You Do?
The first thing that most experts will advise is to get in touch with your insurer directly to see if they can explain the increase. If they are fair and flexible, such as GEICO and State Farms – you’ll undoubtedly be able to work something out to benefit you both. If they are a little stricter however, you might find yourself feeling like you’re in between a rock and a hard place.
Fortunately, there are things that you can do – and the first is to reconsider your options. Most insurers will propose contracts or agreements, but these can be cancelled, paid off, or made invalid for a number of reasons. If you decide to switch insurer for a cheaper deal, this is entirely up to you. You might find that shopping around online could lead you to a more suitable provider, or perhaps the worry of you leaving could even force your current or existing insurer to lower their costs in an effort to keep you on board with their services.