Can an auto insurance company increase premiums on each renewal from points stemming from a previously insured vehicle?
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Can an auto insurance company increase premiums on each renewal from points stemming from a previously insured vehicle?
We had an insured Nissan Altima which was replaced by a new Nissan Sentra. The original monthly premium on the Sentra was $166.50. My daughter ran over a pothole and had to file a claim. The tire rim had to be replaced. When the policy was renewed in July the new premium was $223 due to an
Asked on December 28, 2018 under Insurance Law, Virginia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
It's legal because at the end of the day, insurers can charge whatever they want, why-ever they want. Remember: they are not forced or required to sell insurance--they choose to be in the business of selling insurance, and can set their rates based on their perception of risk and to insure themselves a profit. They can raise your rates, and your option is whether to pay it or go elsewhere. So yes, they can raise again on the same points or incident.
You don't have to stay with this insurer: in my experience, changing insurers periodically results in lower rates, because you get your best rates when they want your business.
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