Why Are My Auto Insurance Rates Going Up And How Do I Lower Them?

Auto insurance rates for drivers in Texas and across the nation are increasing.  Consumers want to know why this is the case and how they can maintain or reduce their rates.  This is particularly the case for auto insurance in McKinney, Texas and the surrounding Dallas-Fort Worth metroplex.  The following are a few FAQs you should know about auto insurance rates:

1. Why do auto insurance rates increase?  Auto insurance rates can increase due to an increase in the cost of auto claims paid by insurers.  These increased costs can be attributed to more auto accidents, increased parts and labor costs and increased costs of auto injury settlements. 
2. I haven’t had any tickets or accidents – why are my auto rates increasing?  When you insure your auto with an insurance company, you are pooling your risk along with all other people insured with that same company.  If the losses for the whole group are increasing, that could cause your rates to increase as well. 
3. How can I lower my auto insurance rates?  You should check with your insurer to determine if you have all of the discounts applied to your policy that you are qualified to receive.  Discounts vary by insurer, but generally, you may receive discounts for insuring multiple autos and combining multiple policies (e.g. auto/home/life) with one company.  Also, you may be eligible for discounts based on your occupation or college degrees that you have.  Insurers also may give discounts based on how you choose to pay your premium, such as paying in full or setting up your premium on automatic monthly drafts.   

If you have additional questions regarding your auto insurance, please stop by my offices in McKinney, TX or give me a call at (972) 727-9111.

Stan Polk, CPCU - Agency Owner

6951 Virginia Parkway, Suite 316

McKinney, TX 75071

I am a Farmers® agent but my posts are my own and are not statements by or on behalf of Farmers.