We get this question often, “My car is older, and I have no accidents, why didn’t my car insurance go down?”
Unfortunately, it’s not quite that simple. There are many factors that go in to determining the cost of any particular car insurance policy, but in each and every instance, the rates have a major influence on how much we all pay for car insurance. Very often, from one year to the next, there will be a rate increase. Auto Insurance companies doing business in Massachusetts must petition the Massachusetts Division of Insurance before rate hikes may be approved.
Some additional considerations are:
- The unfortunate truth: we live in a litigious society. Liability protection costs do not go down simply because someone is driving a car that is one year older.
- Massachusetts car insurance rates are based upon the Operator SDIP Rating. Have you had an accident, ticket, or other moving violation in the past 5 years? These events will stay on your record and affect your SDIP rate for 5 years.
- Costs to repair after a crash: Most collision claims resolve by making repairs to that vehicle. Even if your vehicle is older, often repairs are made using brand new replacement parts, and the cost of that part and the labor involved have increased significantly.
- Changes to your policy may affect your rate. Changes such as adding or removing a driver, or moving to a different town all may have an upward or downward effect on the cost of your Massachusetts Car Insurance.
- Here at Elliot Whittier Insurance, we provide home and auto bundle discounts in many cases. Removing your home insurance may affect your car insurance rate.
In addition, a July 2016 article in the Boston Globe has noted an expected 6 – 9 percent increase in Massachusetts car insurance premiums after 5 years of relative stability.
So, what steps can be taken to reduce your auto insurance costs? Make sure that you are taking advantage of all the car insurance discounts that you are entitled to. Some of those discounts are:
- Multi-policy discounts (AKA Account Credit) as mentioned above, in many cases when you have your home and auto insurance with us, we can access multi-policy discounts for you.
- Multi-car discounts. If you and other family members have separate policies, see if it makes sense to combine them on one policy for this discount.
- Hybrid and Electric Car discounts.
- Low Mileage Discount
- Passive Restraint Discounts
- Good Student Discount. Student Away at School Discount
- Over 65 Discount
- Paperless Discount
- Pay-in-Full Discount
- Pay by EFT Discount
- Car Alarm and Vehicle Recovery Systems
Another way to reduce your premium would be to consider raising your deductible. Going from a $500 deductible to $1000 deductible will most likely save you money. In addition, premiums may differ from company to company and we are happy to check around for you when your policy is up for renewal.
It’s always a good idea to discuss your concerns with us, we are here to help with whatever questions you may have about your car insurance. Click here 24/7or call today 617-846-5000
With offices in Danvers & Winthrop Massachusetts, Elliot Whittier Insurancehas been awarded the Five Star Award of Distinction from the Massachusetts Association of Insurance Agents. Elliot Whittier Insurance is also a Trusted Choice® Agency and represents multiple insurance companies, so it offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs. You can visit Elliot Whittier Insurance online at www.ElliotWhittier.com, or email info@elliotwhittier.com or call 800-696-3947
