Can an auto insurance policy change its rates after the start date?
I currently have three policies with Geico:
– An auto policy in New York that renews on the 9th
– An auto policy in New Jersey that renews on the 10th
– A homeowner’s policy that renews in seven weeks
I’m receiving multi-policy discounts for all of these. However, I’m considering switching the NJ auto and homeowner’s policies to another provider for a better rate. I plan to make the switch on the 10th, right after the NY policy takes effect. I know that I’ll lose those multi-policy discounts once I do.
My question is: will the NY policy increase in price once it renews? I don’t pay for it, but my family members are also on the policy, and it’s quite a bit of money. I’d like to delay any discussions about potential price increases for as long as possible.
Yes, an auto policy can change pricing after the policy start date, but it typically depends on various factors. Insurers sometimes adjust premiums based on changes in risk factors, claims history, or even state regulations. However, once your NY policy renews on the 9th, your rate should be locked in for that policy term unless there’s a significant change or you initiate a change, like altering the coverage.
If you move your NJ auto and homeowner’s policies to another carrier on the 10th, losing the multi-policy discount could potentially affect the pricing of the NY policy during its next renewal period. However, the immediate effect on the current NY policy premium may not occur until it is up for renewal again.
It sounds like you’re trying to manage costs effectively, especially since you’re not paying for the NY policy directly. To avoid any pricing complaints, it’s a good idea to communicate with your family members about the potential impacts of these policy changes and reassure them that the premium for the NY policy is fixed until its next renewal. Just be sure to keep an eye on the renewal date for any adjustments that may occur then.