Stillwater News Press

Our World

July 31, 2012

Car insurance rate hikes not uncommon this year

Many consumers have opened letters from their car insurance company this year and been disappointed to learn that their premiums are going up. Sometimes by a lot.

Lynette of Boca Raton, Fla., said she and her husband have been insured with The Hartford, through AARP, for years.

“Many years with company never a late payment. Never a claim, no tickets, no accidents, clean driving record, no arrests,” Lynette wrote in a ConsumerAffairs post. “And a $600.00 increase! Their commercial says (they) will never drop you for any reason. But they sure know how to force you out!”

Before Lynette changes insurance companies she should call The Hartford. She is entitled to ask why her rate went up, especially by so much. It's possible that it's a error that could be corrected. It never hurts to ask.

Just because Lynette and her husband are good drivers and haven't submitted a claim doesn't mean their rate can't go up. Insurance is a shared risk, and if claims have jumped in Lynette's geographic area, all policyholders might be hit by a rate increase. And according to one insurance professional, that could well be one explanation.

Tough year for premiums

“I know you don’t want to hear this, but 2012 is going to be a tough year for your premium,” Keith Verisario, Vice-President of Chicago-area All-Security Insurance, writes in his blog. In 2011 insurance companies paid $1.16 for every $1.00 collected. They paid over $100 billion in worldwide losses. In the U.S. they paid $36 billion in losses. In 2010 it was about $18 billion -- that is a lot of negative profit, or in other words, insurance companies lost a lot of money.”

Verisario suggests consumers faced with a big rate hike contact an independent insurance agent that can offer quotes from multiple A to A++ rated carriers. Another way to get a lower rate is to bundle your homeowners and auto policies with the same carrier.

Text Only | Photo Reprints
Our World
Must Read
Buy & Share Photos
NewsPress e-Edition
NewsPress Specials
AP Video
Crashed Air Algerie Plane Found in Mali Israel Mulls Ceasefire Amid Gaza Offensive In Case of Fire, Oxygen Masks for Pets Mobile App Gives Tour of Battle of Atlanta Sites Anti-violence Advocate Killed, but Not Silenced. Dempsey: Putin May Light Fire and Lose Control Arizona Prison Chief: Execution Wasn't Botched Calif. Police Investigate Peacock Shooting Death Raw: Protesters, Soldiers Clash in West Bank Police: Doctor Who Shot Gunman 'Saved Lives' 'Modern Family' Star on Gay Athletes Coming Out MN Twins Debut Beer Vending Machine DA: Pa. Doctor Fired Back at Hospital Gunman Raw: Iowa Police Dash Cam Shows Wild Chase Obama Seeks Limits on US Company Mergers Abroad Large Family to Share NJ Lottery Winnings U.S. Flights to Israel Resume After Ban Lifted Official: Air Algerie Flight 'probably Crashed' TSA Administrator on Politics and Flight Bans Raw: National Guard Helps Battle WA Wildfires
Stocks
NDN Video
Bill Murray Continues To Be Just Bill Murray By Eating Some Free Bill Murray Ice Cream Deja vu: Another NYPD officer choke-holding a suspect Hillary Clinton Blamed Bill's Affair With Monica Lewinsky On Abuse He Suffered As A Child 'Fifty Shades of Grey': Watch the Super Sexy First Trailer Now! Reports: Ravens RB Ray Rice Suspended For 1st 2 Games Of The Season Chapter Two: Becoming a first-time director Air Algerie plane with 119 on board missing over Mali Diamond Stone, Malik Newman, Josh Jackson and others showcase talent Free Arturo - The World's Saddest Polar Bear A Look Back at Batman On Film Through The Years LeBron James -- Dropped $2k On Cupcake Apology ... Proceeds To Benefit Charity Snoop Dogg Says He Smoked Weed at the White House Raw: Fight Breaks Out in Ukraine Parliament Chris Pratt Interrupts Interview To French Braid Intern's Hair Shirtless Super Mario Balotelli Dances While Ironing - @TheBuzzeronFOX Whoa! Watch "Housewives" Star Do the Unthinkable LeBron apologizes to neighbors with cupcakes Justin Bieber In Calvin Klein Underwear Shoot Samsung Pre-Trolls The IPhone 6 With New Ad Jimmy Kimmel Introduces His Baby Girl