If you’ve received notice that your insurance rate is decreasing, congratulations! While premium reductions are often positive, it’s natural to wonder why your rate went down and if there’s anything you need to check to make sure it’s good news all around. Here’s a breakdown of why premiums drop and what you should know to avoid any surprises… Check out our guide below.
Questions? Reach out to one of our knowledgeable agents. We’re eager to set you up with the right coverage and rate!
Why Your Premium Might Drop
There are several reasons your insurance rate might decrease, and it’s usually a result of positive changes, like:
Improved credit score: Insurance companies use credit information when determining premiums, so if your credit score has improved, it could result in a lower rate.
No recent claims: A history with fewer or no recent claims often results in a more favorable rate at renewal.
Risk re-assessment: Some policies are adjusted over time as insurance companies assess risk. For example, if you’ve moved to a safer neighborhood or improved security in your home, your rates may reflect that lowered risk.
Policy changes: If you recently adjusted your coverage or increased your deductible, these changes could result in a rate reduction.
Double-Check Your Coverage to Ensure Nothing Changed Unintentionally
While a decrease in premium is usually positive, it’s essential to confirm that your policy covers everything you still need. Some reductions are due to policy changes that may not be obvious, like a reduced coverage amount or higher deductibles. If you have questions about your coverage, reach out to your service team directly to ensure everything is still in order.
Reach Out for Any Clarifications
Our service team is here to help you with any questions about your new premium, current coverage, or any changes you’re considering. Here’s how you can reach us:
- Schedule a call for a time that works best for you.
- Chat with us online for quick answers and guidance.
- Email service@goosehead.com for non-urgent questions. We’ll get back to you promptly to make sure your coverage meets your expectations.
No need to worry about hidden catches—at Cornerstone Insurance Agency LLC (“Cornerstone Insurance”), we’re transparent about your coverage and premiums. Lower rates are often a reflection of the trust we have in your responsible history as a client, and we’re always here to help you understand any changes to your policy.
This article is for informational purposes only. You should not act based on this information without first consulting with your insurance agent; if you would like a quote from a Cornerstone Insurance Agency licensed agent, contact us. We disclaim all liability for actions taken or not taken by you based on the contents of this article which is provided “as is.” Cornerstone makes no representation that this content is error-free.