Battling Auto Insurer Hikes: Your Rights And Strategies

Auto insurance is a competitive industry, and it's important to know your options when it comes to fighting an auto insurer's increase. While it's always a good idea to shop around for the best rates and keep a clean driving record, there are other ways to reduce costs. You can ask for higher deductibles, reduce coverage on older cars, or even bundle your auto insurance with other types of insurance. If you feel that your insurer has increased your rates unfairly, you can call them to ask why the rate was increased and provide any necessary information to prove that the increase was based on false information. If you're still unhappy with their response, you can contact your state's insurance commissioner or even switch insurers.

Call your insurer and ask why the rate was increased

If your auto insurance rates have increased, you should call your insurer to ask why the rate was increased. Premium increases can sometimes be a reaction to an increase in insurance rates approved by your state's insurance commissioner, or they can be due to a change in your insurance status. For example, your rates will probably go up if you get a ticket or are ruled at-fault in an accident. Your rates may also increase due to a change in your credit score.

When you call your insurer, be sure to ask about any negative factors that could be contributing to higher rates, such as your credit or driving history. It's also a good idea to ask about any discounts you may be eligible for but aren't taking advantage of. If you've recently had any life changes, such as moving to a new neighborhood, getting a new job, graduating from school, getting married, or buying a house, be sure to mention these, as they may impact your rates.

If you feel that the rate increase is unjustified, you can provide information to your insurer to prove that it was based on false information. For example, if your rate increase was due to a ticket that was subsequently overturned, you can submit documentation of this fact to your insurer. You may also need to provide an updated driving record, as insurers don't always pull driving records frequently. If they only pull your record after the rate increase, it could be years before they see a correction.

In some cases, a rate increase may be due to derogatory information on your credit report. In this case, your insurer will notify you and give you the right to pull a free report. You can then provide evidence to the credit bureau that the negative information is incorrect, and once it's removed from your report, the credit bureau can notify any recipients of the erroneous report.

Provide information to your insurer to prove that the increase was based on false information

If you believe your insurer has increased your rate based on false information, you can take steps to prove this to them and potentially get the increase reversed. Here are some detailed instructions on how to do this:

Firstly, call your insurer and ask them why the rate was increased. Rate increases can sometimes be a reaction to an increase in insurance rates approved by your state's insurance commissioner, or they can be due to a change in your insurance status, such as a ticket or an at-fault accident. Find out from your insurer what has prompted the increase.

If you believe the increase is based on false information, you can provide documentation to prove your case. For example, if your rate increase was due to a ticket that was subsequently overturned, you can submit court documents or an updated driving record printout to your insurer. Providing an updated driving record is particularly important, as insurers don't always pull driving records frequently, and it could be years before they see a correction.

You can also provide evidence of any other changes or mistakes. For instance, if your insurance rates went up due to negative information on your credit report, you can supply a corrected credit report or have the credit bureau notify your insurer of the changes. You have the right to pull a free report and provide evidence to the credit bureau to get incorrect negative information removed. Once it's removed, the credit bureau can notify any recipients of the erroneous report.

If you think your insurer isn't being responsive to your requests to fix a premium increase based on bad information, you can contact your state's insurance commissioner. They may be able to help resolve the issue.

Give evidence of any other changes or mistakes to your insurer

If you believe your insurer has made a mistake or an increase is unjustified, you should be able to provide evidence to the contrary and get them to change their mind. For example, if your rate increase is based on a ticket that is subsequently overturned, you can submit documentation to your insurer to prove this. Usually, a court document or an updated driving record will be sufficient.

Your insurer will be able to tell you what is necessary to prove their information is false. Providing an updated driving record can be important, as insurers don't always pull driving records very often, and it could be years before they see a correction.

You can also supply a corrected credit report to your insurer or have a credit bureau send a notification of changes to your report. If your insurance rates have increased because of incorrect negative information on your credit report, your insurer will notify you and give you the right to pull a free report. Once you provide evidence to the credit bureau that the negative information is incorrect and it is removed, you can have the credit bureau notify any recipients of the error.

If you think your insurer is being unresponsive to your requests to fix a premium increase that is based on bad information, you can contact your state's insurance commissioner. While they may not always be able to help, it is another resource to leverage.

You can also contest an appraisal by getting an independent appraisal. If this doesn't persuade the insurer to change its position, you can turn to your local department of insurance. A state representative will conduct an investigation to determine the value and whether your insurer was acting unjustly. If that still doesn't end in your favour, your last options are arbitration and litigation.

Insurers look at multiple demographic factors to assess your risk of an accident, so if you've changed your lifestyle in any way, check with your insurer to see if it has affected your rates for the better.

Contact your state's insurance commissioner if your insurer isn't being responsive to your requests

If your insurer is unresponsive to your requests, it may be time to contact your state's insurance commissioner. While they may not always be able to help, it is another resource to leverage.

First, you'll need to gather all the relevant information and documentation to support your case. This includes any correspondence with your insurer, as well as any evidence that contradicts their reasons for increasing your premium. For example, if your rate increase was due to a ticket that was later overturned, a court document or an updated driving record printout would be useful.

Next, find the contact information for your state's insurance commissioner. This is usually available on the department's website. Reach out to them and explain your situation, providing as much detail and documentation as possible. They will review your case and determine if any further action is necessary.

It's important to note that the insurance commissioner's role is to regulate the insurance industry and ensure fair practices. They may not always be able to resolve individual disputes, but they can provide guidance and ensure that insurance companies are held accountable for their actions.

If contacting the insurance commissioner does not yield a satisfactory resolution, you may need to consider other options, such as switching to a different insurance provider or seeking legal advice. Remember to carefully review any decisions made by the insurance commissioner and understand your rights before taking further action.

Dealing with insurance rate increases can be frustrating, but knowing your rights and having resources to turn to can help you navigate the process effectively.

Switch insurers

If you're facing an increase in your auto insurance premium, one option is to switch insurers. Here are some detailed steps to guide you through the process:

Shop Around and Compare Policies:

• Compare quotes from multiple providers, ideally at least three. Use a quote comparison tool to make this process easier.
• Consider your specific needs and look for providers that offer relevant discounts. For example, some companies offer student discounts or discounts for drivers with blemish-free records.
• Evaluate the coverage, limits, and deductibles offered by each insurer. Ensure that you're getting comparable coverage to your existing policy.
• Research the customer service, claims handling, and financial strength of the insurers you're considering. Check ratings from organizations like J.D. Power, Better Business Bureau, and AM Best.

Find the Best Policy for You:

• Reassess your current coverage and decide if you need to make any adjustments. Opting for less coverage will lower your premiums, but it also means higher out-of-pocket expenses if you have an accident or your car is damaged.
• Consider full coverage insurance, which includes liability insurance, collision coverage, and comprehensive insurance. You may also want to add uninsured motorist coverage (UM) and personal injury protection (PIP) or medical payments coverage (MedPay), depending on your state's requirements.
• If you have an auto loan or lease, list your lender on the new policy. They have an interest in the vehicle and need to be informed of any changes in insurance.

Purchase Your New Policy:

• Buy your new policy before cancelling your old one to avoid a lapse in coverage. Even a one-day gap can increase your future insurance rates or lead to penalties for driving without insurance.
• Schedule your new policy to begin at least one day before your current coverage expires. If you're switching in the middle of a policy period, choose a start date for your new policy and cancel your old one afterward.

Cancel Your Previous Insurance:

• Contact your current insurer to cancel your old policy. Do this at least one day after your new policy begins to ensure continuous coverage.
• Be aware of any cancellation fees or refunds due to you for unused portions of your previous policy.
• If you had set up automatic payments, don't forget to cancel them as well.

Get Your Proof of Insurance:

Obtain your new insurance ID card, either physically or digitally. Some states allow digital ID cards, but check your state's regulations and make sure you have offline access to the digital card.

Inform Your Lender:

If you have a car loan or lease, notify your lender of your new insurance coverage. They need to be kept updated on any changes to your insurance policy.

Remember, switching insurers can help you find a better rate, but always compare the coverage and services offered by different companies to ensure you're making the right choice for your needs.

Frequently asked questions