Three Things You Didn't Know Could Increase Your Rates
Remember that some actions, while seemingly unrelated to auto insurance, can still affect how much you pay.
Posted Feb. 11, 2008, at 7 a.m.
We know the obvious things can affect your rates: repeat accidents, adding a teenager to your policy, DUI/DWI convictions, etc. But here are three things you can do that you may not have known can increase your rates.
1. Forgetting to Submit Forms
When you purchase an auto insurance policy, you'll need to sign at least one form — often many more than that. Sometimes you may be asked to acknowledge that you're declining a certain coverage, or you may be asked to provide proof that you had insurance before this policy. There may be other forms you are required to sign and return, but they vary by state and the types of coverage you select. Consult with your insurance company for more information.
If you declined to purchase a certain coverage or if you are required to provide proof of prior insurance, you have a specified amount of time to submit the forms to your new insurance company. If your form isn't postmarked by the date specified, your insurance rate may go up. Why? Because the price given you is based on the assumption that you don't want the coverage or that you had prior insurance. If you forget to send the requested information, that declined coverage may have to be added to your policy (sometimes per state law), or your company may assume you didn't have prior insurance since it didn't receive proof that you did.
Often, this can be remedied, but you may be required to pay more for auto insurance until the requested information is provided.
2. Buying a New Car
Getting a new car is exciting, but remember that you may pay more to insure it. Assuming nothing else changes, the cost of insurance generally goes down as your car ages. Though your new car may not require you to invest a lot of money in maintenance costs, you probably will invest more money in auto insurance for it — especially if you add coverages likes Comprehensive, Collision, Rental Reimbursement and Loan/Lease Payoff coverage.
3. Moving to a New Area
If you decide to move to a new city or even a new neighborhood, it could affect your insurance rate. This could go either way, however, as moving to a safer city might actually lower your rates. But remember, if you move from a smaller city to a larger city, or if you move to a densely populated city, your rates could be significantly higher due to a higher likelihood of incidents that can happen in these types of areas.
Each situation is different, however, so these three things may not always increase your rate. If you notice your rate went up, you can always contact your insurance company to find out why. If you have a Progressive auto insurance policy, our representatives are available 24/7 to answer your questions. Simply give us a call at 1-800-PROGRESSIVE (1-800-776-4737).
Are you covered if you borrow your friend's car?
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