Automobile Premium Control Tips

Weather Disasters Prompting More Focus

One has to notice when even GEICO has gone five quarters without making a profit, that these weather events with flooding and fire are having a substantial impact on auto insurance premium increases.

Premium inflation due to claims suggests a refocus on how you should view your auto insurance.

Here is your need to know!

In the past, auto insurers have had a look back period of 3 years for auto accidents and violations. Claims submitted for Towing and then Glass/Windshield damage were not counted in the claim history.

This has changed

The current look back on accidents and violations is 5 years and then 10 years for major violations. Towing and glass claims are all counted when frequency of claim submission is reviewed. Even non-at fault accidents are included.

Some of these events are beyond your control, but when it comes to towing and glass claims here is a suggested control mechanism.

Towing – join AAA and get your towing charges handled by AAA or if you have a new car your auto company roadside assistance. Using your auto insurance for towing is proving to be a misstep in controlling auto insurance premiums.

Glass Claims – are a bit more complicated. If you get a ding in your windshield from rock damage you may be able to have it repaired as an alternative to have the full windshield replaced, which can be pricey. It would be best to address the damage with a company like Safelite to determine if a full replacement is needed. They can advise you on repair/replace decisions but call them early to determine the solution.

Small Claims – it is unfortunate that the auto insurance rates are being impacted by climate to such a devastating degree. It does suggest that small claims are worth a discussion with your agent to determine what the impact of losing loss free credits will be on your rates, and for how long. It may be in your interest to pay out of pocket for minor losses to control your premiums in future years.

If you have questions on auto premiums and future rates, drop Kyle an email at kshepard@shepardinsgrp.com or call 203.698.9342 for the intel you need.