So you had to make a claim on your PA car insurance policy and now you’re nervous about the inevitable increase in premium that will come at renewal? Or maybe your premium has already been increased from claims you had in the past. In PA, auto insurance companies are legally allowed to surcharge you for up to 3 years after the claim (As if car insurance in Delaware County and Philadelphia weren’t too expensive already). That’s not the only pitfall though. When shopping your insurance, companies run 5-year driving records. Most companies will place you in a more expensive rating tier if there have been any claims within this 5-year period. Bottom line… this claim can affect you for up to 5 years.
However, this doesn’t mean you are doomed to pay astronomical car insurance premiums for 5 years. Now is the time to get a quote, and here’s why:
Some PA insurance companies rate claims more favorably than others.
Without getting too technical, insurance companies have to file rates with the PA Insurance Commissioner. Insurance companies cannot just charge you as much as they want on your individual policy. Company A might hit you with a 15% surcharge while Company B might only charge 8%, leading to a significant savings on your PA car insurance policy.
I have one PA insurance company that will overlook a claim in return for using its UBI (Usage Based Information) device for only 4 months. This device plugs into your car and tracks braking and acceleration habits of the driver, which gives the insurance company a good idea of what kind of driver you really are… rather than just focusing on the one claim you had.
Credit has an enormous impact on your insurance premiums. Possibly the greatest impact of all rating factors. If you have good credit, companies are eager to write your business. The benefit of your good credit score just might outweigh the accident on your record.
This is especially for those of you who have been with the same insurance company for years. When a client walks into my insurance agency in Media, PA for a quote, and they tell me they have been with Allstate or State Farm for 10, 15, or 20 years, I can almost guarantee that I will be able to improve coverage and save them a significant amount of money on their home and auto insurance.
Rates are always changing. Over the past month, I have saved clients in this situation $2,600, $2,500, and $1,200 per year. Each of these accounts had claims. This is also a benefit of having your car insurance with an independent agent such as Risk Averse Insurance in Delaware County… we will shop your insurance for you periodically to make sure you are still getting the best rate.
The bottom line is, you shouldn’t feel trapped with your car insurance company just because you have some claims. You are not the only driver that has them. I would estimate that over 50% of the new business that I quote has some type of claims activity. In the majority of these cases, I am able to help clients save money on their car insurance without sacrificing coverage (you should never sacrifice coverage for a small premium savings).
Call Risk Averse Insurance in Media, PA for a quote on your PA homeowners insurance, and PA car insurance. We can also provide insurance for motorcycles, RVs, classic cars and any other “toys” you own.
Risk Averse Insurance is an insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.