The familiar call came early this morning...why didn't my rate go down? Customers expect their rates to go down when their policy renews. All things being equal, that makes sense. Of course following that logic, if you are a perfect driver your insurance will soon be free - right? We all know that isn't going to happen. So let's assume no new tickets or accidents occur, and you haven't moved. Whether your rate goes down depends on several factors, but I will focus this on the two most likely triggers for the lack of a rate decrease at renewal, and perhaps even an increase.

If you already had prior insurance, you were already getting the prior insurance discount. You probably won't see too much of a decrease if this is the case. Your premium might be exactly the same, or it might be a slight bit less. If you didn't have prior insurance, your rate will probably go down. Probably. Only when the renewal notice is issued will either you or your agent know for sure.

The second most likely reason that your rate doesn't go down is that the insurance company revised their rates. This is very common, and insurance companies usually revise their rates once a year, sometimes more often than that. As a current policyholder you are not effected by any rate revision until your six month policy is done and your are to renew your policy. The renewal policy will be at the revised rates. This can confuse and upset some policy holders. This could be because of too many accidents in a certain area (think zip code), experience rating on a certain vehicle, or general cost of doing business has gone up.

Let me put it another way. The cost of gas for your car has increased, your electricity has increased, your cable TV has increased, and your food has increased. The cost of living, of running a business has increased. Does it not make logical sense that the cost of doing business for the insurance company has also increased? They pay for all the same bills you do.

In this tough economic time, an increase in the cost of anything is a hardship. Please be assured that at Pulse Insurance we will always make sure we have your policy with the most economical insurance company we offer that can provide the coverage you want. To us, that makes sense. If you have any questions give us a call 503-489-3143.