$116 Premium Increase for Removing a Vehicle?
Hi everyone, I need some insights regarding my Progressive insurance renewal. Currently, we have a 1998 Buick on the policy with basic coverage, costing us $281 for six months. When I inquired about the premium if we were to remove the Buick, I was surprised to learn that it would actually increase by $116.
Even though we have a multi-vehicle discount applied (this car is our third), it doesn’t seem to add up. The total discount looks like it’s $396 ($281 for the coverage plus the $116 increase), which is over 30% of the total premium. It seems illogical that removing a vehicle would lead to a higher cost.
Does anyone else find this puzzling?
It sounds like you’re experiencing a confusing situation with your insurance premium. Let’s break this down a bit.
When you remove a vehicle from your policy, it typically should lower your overall premium, especially if you already receive a multi-vehicle discount. However, in your case, the fact that removing the 1998 Buick leads to an increase in cost suggests that the multi-vehicle discount being applied is much larger than the overall cost of that specific vehicle’s coverage.
Insurance companies often have complex pricing structures, and discounts can vary significantly. The multi-car discount is likely being calculated on your entire policy, and removing that car may be impacting your total premium more than expected. It’s possible that since you’re left with fewer vehicles, the remaining premium could be less competitive due to how the insurer assesses risk across your policy.
Here are a few things you might consider doing:
Request a Detailed Breakdown: Ask your insurance provider for a more detailed explanation of how the premiums and discounts are calculated, especially how the multi-vehicle discount is applied with and without that specific vehicle.
Shop Around: Sometimes, different insurance companies have different pricing structures. It might be worth getting quotes from other providers to see if you can find a better deal that doesn’t penalize you for removing a vehicle.
Evaluate Coverage Needs: If the Buick is old and not being used much, consider if super minimum coverage is necessary. It may still be cheaper to keep it on the policy than to remove it if that’s what it results in.
Policy Type Impact: Inquire about the type of policy you have. Sometimes the manner in which coverage is bundled can have unexpected results when changes are made.
In any case, it’s best to get clarity from your insurance company on how they arrived at those figures. It does seem unusual, and they should be able to explain their policy logic to you.