RALEIGH, NC (WTVD) — Many owners and drivers turn to ABC11 after seeing increase in their insurance rates for several reasons, including inflation, rising costs of building and replacing auto parts, and a rate hike in North Carolina that took effect June 1. However, one ABC11 viewer found a way to save hundreds of dollars.
It was a shock for a Raleigh driver when she received an automatic renewal notice from her car insurance company. She currently pays $1,793 a year for coverage for her 10-year-old Honda Accord, but the new rate for another year of coverage has jumped $500 to $2,298. Kim Palmer, a personal financial expert with Nerd Wallet, says not to just click on auto renew.
“Instead of just clicking on auto-renewal, you want to go to a comparison site and just look up different prices, because you might be paying too much and you might find a lower rate, which could actually save hundreds of dollars,” Palmer said.
In addition to taking this step, this viewer called her insurance company Liberty Mutual and asked why the $500 increase in her rates given that she had had no claims, accidents or citations in the past last five years.
“You also want to see if sometimes you have access to a discount, even where you work can give you a discount. If you’ve served in the military, even if you’re a student or a veteran,” Palmer said.
For this viewer, it worked like after she said she had called Liberty Mutual and requested a review of her account and was looking for better rates, a Liberty Mutual representative called her back and lowered her rate. Instead of paying the automatic renewal rate of 2,298, he was now offered a much lower rate of $1,077 for the year. That’s a savings of over $1,220.
Palmer says, “Now is the time for consumers to be aggressive and proactive, to call your suppliers and ask if they can give you a better deal because they want to keep you as a customer.”
When tow truck Diane Wilson asked Liberty Mutual about the case, a representative said, “While we can’t speak specifically to individual customer policy details, most auto insurance consumers nationwide are experiencing higher premiums This is largely due to a significant increase in the severity of claims, driven in large part by steep inflationary increases in labor rates and used car repair costs and medical expenses. This trend, coupled with any change in the characteristics of individual customers, has a significant impact on premiums nationwide.As in this situation, customers who request a policy review to determine if there is there new pricing programs that were not originally available to the font, or think they may have changes in their features. risk managers, could incur higher or lower premiums than their existing policy quote. »
So it’s worth a try, if it’s time to renew your policy and it’s higher than your current rate, shop around and call your insurance to see if you can get a lower rate.
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