It's rare that your auto insurance rates will spike from a single incident. Insurers don't tend to raise rates randomly, and you'll often see your premiums stay steady even after filing a minor claim.
However, there are times when insurers can suddenly increase rates due to a significant weather event in your area. One carrier could raise rates in response, or all of them can.
Let's take a closer look at why this happens and what you can do about it.
Large Numbers of Claims in a Short Period of Time
Insurers often raise rates to account for a spike in claims in the wake of a significant weather event. For example, if a natural disaster occurs in the area, the insurer may face dozens, if not thousands of claims.
Those claims can cost the insurer bigtime. So, it may decide to increase rates to recoup the costs.
The Area's Risk
Another instance in which the rates will go up related to weather has to do with risk. Has the area's risk level gone up? For example, if the area has become more prone to earthquakes or floods recently, this may lead the insurer to increase rates. Keep in mind that this may occur over a period of time.
What Type of Weather Events Can Impact Auto Insurance Rates?
Any type of severe weather event — including phenomena such as earthquakes — can lead to a spike in insurance rates. This is a constant risk, regardless of where you live, as weather patterns are always changing. Just because storms haven't ravaged your area doesn't mean it won't someday face incidents such as hurricanes, earthquakes, tsunamis, flooding, hail wind damage or tornadoes.
How To Combat Weather-Related Rate Increases
Are your rates increasing? If they are, now is a good time to take action. Speak to your agent about your current car insurance policy. See what offers are available to decrease costs, including switching carriers.
Independent agents such as Cloverleaf Insurance are extremely useful in this endeavor, as they work with multiple carriers and can often find you a better rate. If you've seen your rates spike due to a weather event, call us at (800) 530-5822 or request an instant quote to see what you could save.