OnlineAutoInsurance.com Educates Consumers on Premium Increases

Los Angeles, CA, December 07, 2010 --(PR.com)-- The writers at OnlineAutoInsurance.com have published a new FAQ outlining the possible reasons that an insurer might raise a policyholder’s premiums. As they explain, such an action could be attributed to changes either on the part of the policyholder or on the part of the insurance provider. Most changes, though, can be attributed to the driver.

Policyholders who have experienced a rate increase may want to get auto insurance quotes online and obtain rate estimates from a variety of carriers. By doing this, consumers may be able to assess whether the increase has resulted from a change on their side or on the insurance company’s side.

The most obvious catalyst for a premium increase is a motorist committing a traffic violation or getting into an expensive, at-fault accident. Paying claims costs insurers money, and drivers with violations pose greater future risks. But there are other changes a motorist can make that may unexpectedly cause a rise in rates.

Moving to an area with higher averages for frequency and severity of claims, for instance, can signal to an insurer that a motorist is increasing the likelihood of getting into a potentially costly accident. This logic may seem like a stretch to some. But according to a legislative review of insurers’ use of territorial ratings, the location where an insured driver garages his or her vehicle has actually proved to be one of the most accurate predictors of future loss.

Source: http://www.cga.ct.gov/2006/rpt/2006-R-0542.htm

Unfortunately, drivers could see a rise in premiums through no fault of their own. Sometimes the amount of claims accumulated by a pool of policyholders or the cost of overhead outpaces an insurance company’s projections, necessitating that the insurer level out the losses by raising rates. Other times the rise is simply a reflection of inflation.

Readers who would like to find resources for getting quoted online can go to http://www.onlineautoinsurance.com/quotes/ where they will be able to use the free quote-comparison generator. Visitors can access the full FAQ through the home page of the site.

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