Can an auto policy adjust its pricing after the policy has started?
I currently have three policies with Geico:
- A car insurance policy in New York that renews on the 9th
- A car insurance policy in New Jersey that renews on the 10th
- A homeowner’s policy that renews in 7 weeks
I’m receiving multi-policy discounts for all of these. I’m planning to switch the NJ auto and homeowner policies to another company for better rates on the 10th, right after the NY policy takes effect. However, doing so will eliminate my multi-policy discounts.
My question is, will the NY policy increase in price once it renews? I don’t pay for it directly, but it’s for family members who are included on the policy, and it’s quite expensive. I’d like to delay any price complaints for as long as possible.
Yes, an auto policy can potentially change pricing after the policy start date, but there are specific circumstances under which this may occur. Generally, initial premium rates are based on the information provided at the time of application and may remain consistent until the next renewal period. However, if there are changes in risk factors—such as changes in your driving record, claims history, or other relevant factors—this could lead to adjustments in pricing that take effect during the policy term.
In your case, if you decide to move the NJ auto and homeowners policies to another carrier, it will indeed impact your multi-policy discount with Geico. Once you remove those policies, your premium for the NY auto policy may change at renewal time, but it shouldn’t increase immediately after the change unless there are other underlying risk factors.
It’s important to communicate with your Geico representative to understand how the changes might impact your current policy and to inquire about possible changes in pricing after the renewal takes effect. If you’re concerned about pricing complaints from your family members, you might want to discuss these factors with them, so they have a clearer picture of the potential variables at play.