As insurance agents, we find we can have interesting conversations with our clients, and we try to help educate and/or clarify their concerns to the best of our ability. As in previous blogs, we have addressed questions clients have brought to us over the years. Today we are addressing this question - "Can the President of the USA lower my car insurance rates?"
Some Common Factors
- Location, Location, Location. Where you live -- your county and the state in which you reside matters. Consider urban living versus rural living. For example, in an urban environment, you have a greater chance of being in an accident with another vehicle or having your vehicle vandalized or stolen. While in rural areas, you may have a lesser chance of a motor accident or having a vehicle stolen, but may have a greater chance to impact with a deer.
- Age and Experience. The older you are can mean the more driving experience you have, which could translate into fewer or no accidents. No accidents and more than 3 years of driving experience, could improve your rate.
- Financial responsibility. Most states require drivers to be financially responsible and having auto insurance is acceptable to meet this requirement. Keeping continuous insurance coverage on your car can help improve your rate. However, if there is a gap in coverage -- intentional or not -- your insurance rates may see an increase.
- Claims. When involved in an at-fault accident, once or multiple times, this could increase your rate, or even cause an insurance company to cancel your policy for excessive claims.
- Type. The type of vehicle you drive does come into play; some vehicles can cause significantly more damage if involved in an accident with another vehicle. Visualize an Dodge Ram pickup versus a Corolla. The Corolla rear-ending the Dodge may not cause much damage to the Dodge. However, that would not be the same result if the Dodge rear-ended the Corolla. The potential of injuries to the Corolla driver and their passengers is greater, in addition to the damage to their car would be greater, resulting in a potentially higher payout.
- Coverage: With liability coverage, each state has established minimum to maximum liability limit protection and each policy owner determines what liability limit selection they want at the time of insurance purchase. These limits can usually be changed during the policy period. However, after an auto accident has occurred, higher limits of liability (more protection than you normally carry) cannot be backdated to cover that event.
In the car insurance world, the pandemic presented different challenges for the insurance companies. While some insurance companies offered a one-time refund, others did not offer refunds, or discounts. One particularly helpful change was drive-per-mile insurance rates, which offered a considerably lesser premium based on the number of miles actually driven. To participate in this program, an electronic device was attached to the vehicle and would automatically calculate the mileage driven, sending the information directly to the insurance company. Persons working remotely and the elderly who may not drive as often as they once did, found this type of policy beneficial to their budget.
With insurance, the President has made recent remarks about changes he would like to make.
- Public Health Insurance Option to the Affordable Care Act (ACA)
- Alternative for those who were not eligible under the Medicaid or Medicare program.
- It would be a government-sponsored insurance program versus private insurance.
- Premiums to be designed for individuals and families
- Rates proposed to be based on a percentage of income.
- H.R. 1270 the "Prohibit Auto Insurance Discrimination (PAID) Act"
- Would prohibit specifically auto insurance companies from using certain factors in insurance rating and underwriting decisions.
- Would give the Federal Trade Commission regulatory authority over some aspects of underwriting.
While the President can freely share changes he would like to make, and issue executive orders, there are processes to our government as there are with insurance companies. The majority of changes in our laws come through Congress, and usually allow for research, evaluations, and feedback.
Can the President of the USA lower your car insurance rates?
At this time, there have been no significant changes by the President as to how insurance companies determine the rate you pay. Your age, driving experience, claims history, type of vehicle you drive, the county and state you live in, and having continuous insurance coverage are just a few of the factors which determine the rate of insurance you pay.
We'd love an opportunity to help give you the second opinion on your vehicle insurance you deserve.
We have a few options for you:
- Request a consultation. Talk with a licensed team member about your unique situation; they will tailor the insurance company and coverage to exceed your expectations! (We currently offer telephone, email, in-person and virtual consultations.)
- Quote multiple insurance companies at one time. Click here to complete a few questions and receive instant quotes. You have the option to speak with a licensed team member to review your selection to get started.
- Quote and bind a Nationwide policy. Nationwide offers an opportunity for you to skip the consultation with the quote and bind your own policy option.
We are available to help if you have questions!