Your Auto-Owners rate could have gone up for many reasons, such as a recent claim or a new driver being added to the policy. Other factors that could cause Auto-Owners to raise your rate include getting into an accident, being convicted of a moving violation, and adding coverage to your policy. Auto-Owners may also raise your premiums for reasons that are beyond your control, such as recent natural disasters, increasing repair and healthcare costs, and crime trends.
Top Reasons Why Auto-Owners Raises Rates
New driver or car added to a policy
Recent switch to an expensive car
Relocation to a high-risk zip code
Decline in creditworthiness
How to Lower Your Auto-Owners Insurance
If you’re struggling to afford your Auto-Owners premium, there are a few steps that you can take to lower your rate. You can start by looking for Auto-Owners discounts that you can qualify for, such as the safety features or multi-policy discount. You can also make changes to your policy, including raising your deductible and reducing your coverage.
Another option is to switch insurance companies. Each insurer calculates rates differently, so you may be able to get the same amount of coverage elsewhere at a lower price. As a general rule, you should get quotes from at least three different companies every 6-12 months to make sure that you’re still getting the best deal.
You can lower your Auto-Owners car insurance costs by taking advantage of Auto-Owners discounts, opting for a higher deductible, and reducing your coverage, among other things. Auto-Owners considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.… read full answer
How to Lower the Cost of Car Insurance from Auto-Owners
Use Auto-Owners’s auto insurance discounts
Auto-Owners offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount of up to 20% if their policy covers a college or high school student who maintains at least a "B" average. Or you can save on your premium if you have more than one policy with Auto Owners.
Raise your car insurance deductible
Opting for a higher deductible on any of your insurance policies from Auto-Owners can lower your premium. But if you decide to go this route, it’s important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.
Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it’s important to approach coverage decisions with caution.
Improve your driving record
Practicing save driving habits and avoiding moving violations can help you qualify for lower Auto-Owners insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state.
Build and improve your credit
Because your credit history is correlated with your likelihood of filing an insurance claim, Auto-Owners uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.
Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your Auto-Owners premium.
Drive an insurance-friendly car
Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from Auto-Owners to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.
Sign up for TrueRide
TrueRide, the Auto-Owners telematics program only available to drivers in Ohio, rewards you for good driving with a discounted premium. Specifically, TrueRide tracks miles driven, the time of day that you drive, speed, braking, acceleration, and distracted driving.
Finally, if you’re still struggling to afford your Auto-Owners policy, you should consider switching insurers. Even if you’re not actively looking for a new policy, it’s generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub’s guide to switching car insurance companies.
There are many reasons your car insurance can go up. If your auto insurance premium went up at renewal time, it may be because you caused an accident, earned a ticket, switched cars, added a teenage driver to your policy or increased your coverage. Even moving a short distance or paying a few credit card bills late can raise your car insurance cost. Your rate may also have been affected by widespread changes beyond your control—in economics, weather, crime and accident statistics, vehicle technology, new laws, medical costs, or your insurer’s profit margin.… read full answer
Top 10 Reasons Your Car Insurance Can Go Up:
1. You increased your riskiness, in the eyes of your insurance company
This happens when you cause an accident, get a ticket for a moving violation, or add a riskier driver like a teenager to your policy.
2. You increased your coverage
Maybe you realized you didn’t have enough protection for your peace of mind, in case of an accident. Higher limits or lower deductibles equal higher premiums.
3. You changed cars
Perhaps you traded an older model for a newer one that raised your rate for collision and comprehensive insurance. Rates will also rise if you trade a safe, practical vehicle for something more expensive, faster, or with special modifications.
4. You moved
If you move into a zone with more population density, a higher theft rate or more insurance claims, your rates can rise. Moving a few blocks can cost as much as 64%, according to some studies. Moving from a small town to a metropolitan area can cost much more—from 300% to 800%.
5. Your credit score fell
Most insurers use credit history in setting rates. If your rating falls from excellent to poor, your premium could as much as double in some states.
6. The economy is stronger
This is a good thing except when it comes to insurance costs. More people working means more drivers on the road, going more places. This raises risk and rates across the country.
7. Medical costs are rising
From 2012 to 2017, bodily injury liability claims increased in cost by 10% per year.
8. Repair costs are rising
Prices for motor vehicle repairs were 61% higher in 2017 than they were in 2000, according to the U.S. Bureau of Labor Statistics. New safety features, with their many sensors and computer chips, are expensive to fix.
9. Cell phones are distracting
At least nine Americans die and 100 are injured in distracted driving crashes every day, according to the National Safety Council. And 1 in 4 car accidents in the U.S. is now caused by texting and driving. Accident rates due to distracted driving are increasing year by year.
10. Marijuana is being legalized in more states
Accidents rose up to 6% in states with legalized recreational marijuana between 2012 and 2017, compared to neighboring states where it remained illegal, according to the Insurance Institute for Highway Safety.
Many of these issues affect your rates because they affect the bottom line of your insurance company. When your insurer isn’t making enough money to cover the cost of claims, they have to raise prices. However, the effects aren’t equal on all insurers. If your car insurance has gone up, it’s important to comparison shop for a company that can offer you the lowest rates.
Common reasons for high car insurance costs include your driving record, age, coverage options, where you live, the car you drive, your credit history or not taking advantage of discounts. The average car insurance premium has also become more expensive as it increased by more than 50% in the past 10 years.… read full answer
8 Reasons Why Your Car Insurance Is So Expensive
1. You Have a Poor Driving Record
Your driving record is probably the most important factor in determining your car insurance rates. If your record is poor, with accidents and driving violations, and you have a history of claims, your rates will be high. You will also pay more than average if you’re bad with credit, young (especially young and male), or unmarried.
2. Your Vehicle Is Expensive to Insure
Insurance companies like safe, boring cars that nobody wants to steal for joy-riding or parts. If you choose to drive something large, fast, luxurious, statistically unsafe on the road, or popular with thieves, you will pay more.
3. You Live in a High-Risk Location
Where you live has a large impact on your premiums. Some areas of the country have much higher insurance costs than others. A number of factors go into this, such as the history of accidents in the area, population density, the number of uninsured drivers, crime statistics, bad weather patterns, etc. Also, if you live far from work and have a long daily commute, the high annual mileage could raise your rate.
4. You Have High Coverage Amounts
If your coverage limits are high and your deductibles are low, you will be happy if you need to make a claim, but not as happy when you’re paying your premiums. If the insurance company risks having to pay out more in the future, you will have to pay more now.
5. You Are Not Taking Advantage of Discounts
Insurers offer a very wide variety of discounts. Valued customer discounts offer savings for things like loyalty, multiple cars and policies, and paying online. Driver discounts may apply if you are a good driver, good student, belong to a certain profession or organization, are married, or more. Your car may also qualify for a discount if it has equipment that makes it safer to drive or harder to steal. Discounts are available to nearly everyone, and you may qualify for some that you aren’t getting credit for yet.
6. You Are Too Young or Too Old
Teens are statistically more likely to cause car accidents than the average driver, so insurance companies charge them the highest premiums. Drivers who get their license at 16 years old usually see their premiums decrease with every year of experience, however, and age 25 is generally considered a turning point when premiums become considerably lower.
Experienced drivers in their 40s and 50s are often the cheapest to insure. But rates begin to rise again after age 65.
7. You Have a Low Insurance Score
Every major insurance company uses a credit-based insurance score to calculate premiums where allowed by law. Like credit scores, insurance scores are based on credit report information, only they are used to predict a driver’s likelihood of filing a claim. The rationale is that individuals who are careful with their money tend to be careful drivers, too.
However, insurance scores are controversial, so they are banned in Massachusetts, Hawaii, and California. Most other states also have restrictions on their use, which can be found on the state insurance regulator’s website.
8. Costs Increasing Overall
Record-setting natural disasters, more phone-related car accidents, high rates of insurance fraud, and expensive-to-repair car technology have all increased costs for insurance companies. As a result, insurers have been raising their prices to cover their expenses.
From 2010 to 2019, the average cost of car insurance increased by more than 50%. Prices have gone up every year. This steady rise in insurance costs has outstripped other consumer costs. Even skyrocketing hospital costs lag slightly behind car insurance.
Overall Cost Increases from 2010 to 2019
Car Insurance: 52.2%
Hospital Services: 49.1%
Cost of Living: 17.2%
Physician’s Fees: 15.7%
You can’t reverse this industry-wide inflation. But if you want to lower your own insurance costs, address as many of your personal factors as you can. Then get quotes from multiple insurance companies and compare.
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