When purchasing auto insurance, your goal may be to find a low rate. You want to save money. During the course of the year, you may experience situations requiring you to file a claim. Will this cause your rates to go up? What about next year, when you try to renew? Some insurance companies offer rate protection. Here’s how it works.
Rates Can Change Year-to-Year 
It is not uncommon for car insurance rates to change from one year to the next. This occurs for many reasons, both those in your control and those beyond it. Some car insurance providers offer rate protection. This may mean the same rate applies for more than one year.
For example, you may decide to purchase a policy with rate protection from your agent. That means the next year, when it is time to renew, your rate remains the same as long as your coverage remains the same. If you add more protection, your rate may increase. This can give you some peace of mind knowing you can keep costs in line for at least a year or more.
What Impacts Auto Insurance Rates?
The rate you pay for insurance depends on many factors, including things that change year to year. If a company offers rate protection, be sure to learn what limitations this offers. If your auto insurance provider does not offer this, you can often ask for the same rate.
The following are some of the factors that play a role in determining the premium you will pay. Be sure to clarify information with your insurer if you are unsure of your coverage or costs.
- The amount of coverage you have (based on the value of your car and risks you face)
- The type of coverage you have (auto insurance may include comprehensive, collision, liability, and other forms, for example)
- Your driving history, especially if you have numerous speeding tickets or other moving violations
- Your age and gender (younger men tend to pay more for coverage, as do seniors)
- The car you own, especially if it is very valuable or has high-end features on it
The right car insurance premium for you is one that fits your budget. Yet, it also needs to cover your risks. Work with your auto insurance provider to balance these factors. Rate protection may be one way to keep your costs more in line with your goals.