Nearly all policies are renewed once a year and insurers send renewal notices to let the policyholder know. This notice contains the agreed policy levels, terms, conditions and premium for continuing it. This is probably the best time to search for better deals. Policyholders can have a clean break from the previous provider by just not renewing with them and buying the policy from a rival provider.
The fair way to end any contract is when it is up for review. People can be dissatisfied with the service they received, the price they are offered or just looking to see if there is a better deal. The best part of it is that they do not have to offer any excuse for parting.
Especially, seeing increases in the rates is one of the reasons for searching around a bit. At times, people might come across this unexplained increases. It is best to ask the insurer first. They should normally come up with an explanation. It may be because of the changes in the circumstances of the policyholder and it can be well justified.
But drivers should not put up with rate rises because of the incompetence of the company. If a company suffered high claims, they might feel the need to increase the rates. In fact, it does not have to be claim payments. It can just be bad management drugging the firm down. Whichever the reasons, these are not the problem of a loyal customer and they should not be made to carry the burden.
Actually, this increase will be more than the difference between the premium for last year and this year. Normally, a good driver with no claims should be getting discounts for every year that passes with no incident. Insurance company has already pocketed the premium paid last year and it is not fair for them to come back and ask more than fair.
If there was a claim last year, the current insurer would be the one to understand you in this circumstance. Some companies may not make a big deal out of a small claim once in a while. Others may want to punish you heavily for daring to put in a claim. If you are unlucky enough to be with a latter type of company, do check around to see what else on offer.
Regardless of the circumstances, consumers should get several quotes at each auto insurance renewal period. One year is a long enough time in a dynamic market. It is possible that people missed a few years without doing anything else as well. Having had a competitive quote several years back from the current company does not mean that it stands to be the same.
Furthermore, auto insurers come up with much improved packages every year. Even you cannot reduce the rate it is possible that you get great coverage for the same price. Besides, what is wrong with confirming that you are still being looked after by the company you are with?