$116 Increase in Premium for Removing a Vehicle?
Hi everyone, I’m facing an interesting situation with my Progressive insurance renewal. We currently have a 1998 Buick on our policy, which has minimal coverage costing $281 for six months. I inquired about the cost if we were to remove this car, and to my surprise, it would actually increase by $116!
We already benefit from a multi-vehicle discount since this is our third car, but the math isn’t adding up. The discount seems to be $396 ($281 plus the $116 increase), which is over 30% of the total premium for all three vehicles. It feels counterintuitive that removing a car would make our insurance more expensive.
Does anyone have insights into how this works?
(Note: All figures are for a six-month coverage period.)
It sounds like you’re encountering a common issue with insurance pricing structures. Here are a few points to consider:
Multi-Vehicle Discount: Insurance companies often provide discounts for having multiple vehicles on a policy. However, the way these discounts are calculated can vary, and they might not be linear. If removing a vehicle means losing part of that discount, the overall cost could indeed increase to the point where it seems counterintuitive.
Fixed Costs: Some of the costs associated with your policy may be fixed or not directly tied to the number of vehicles. This includes administrative fees or certain coverage provisions that apply regardless of the number of cars.
Minimum Coverage: The car you’re considering removing might be the least expensive to insure, but removing it could alter the risk profile of your overall policy. This could have an unexpected impact on your premiums or available discounts.
Quote Specificity: The $116 increase might reflect how your insurer calculates premiums for the entire policy, which can lead to unexpected changes when cars are added or removed. It’s worth asking your insurance agent for a clearer breakdown of how the pricing is derived.
Shop Around: If the figures don’t add up or if you find the premiums to be too high and confusing, you might want to shop around for quotes from other insurance companies. Different insurers have varying ways of assessing risk and discounts, which could lead to savings.
It’s definitely perplexing that removing a vehicle could increase your premium, but unfortunately, insurance pricing can sometimes lead to these unexpected scenarios. It might be worthwhile to reach out to your agent with these questions for clarity.