By JLP | January 31, 2008
Remember last summer wehn I wrote about how my insurance agent set me up with a new auto insurance policy and that by doing so, I was going to save $800 per year? If not, you can read about it here. The only difference that I could tell between the new policy and my old policy was that the new one was a 6-month policy while the old policy was for one year.
I got my renewal in the mail this week. It looks like I’m going to have to give back some of that savings.
The renewal premium is $731, which is $84 more than my policy from 6 months ago. It doesn’t seem like that much of an increase but if they do this to me every six months, I ain’t gonna be happy! If I annualize the new premium, it makes premium $1,462 per year, which is still a lot cheaper than the old policy.
I asked the agent about this and she said that Travelers raised their rates and that my renewal reflected that. Now I know why the insurance company went with a 6-month policy! Every six months they have an opportunity to raise rates.