There are a few reasons that can explain why your premium changed. Is this your renewal bill? Did you move? Did you add a car or driver? Did you delete a car or driver? Did you ignore a letter the insurance company sent you asking for additional information about other household drivers? Are there outstanding late or reinstatement fees due? Any of these situations can cause your bill to change mid-term.

I recently received a call from a customer who has been with us on and off, about 58 years old, married, and with two cars and one ticket. I quoted him $224 a month for his car insurance. He wanted to know why it had increased so much, from around $170 per month. It was a straightforward answer, but difficult to explain. A reduction in his insurance score caused the increase.

The insurance marketplace has changed dramatically over the last couple of decades. Individuals, families, and businesses have bought insurance face-to-face at an office or storefront for a couple of hundred years. The interaction through the quoting, application, and policy issuing process was face-to-face with paper, ink, and a handshake.

I remember when it didn’t matter what kind of car I bought; the insurance price was the same for basic liability from one automobile to the next. There were a few exceptions, like if it was classified as a sports car or had four-wheel drive. The insurance company didn’t care whether the vehicle had a clean or reconstructed title. They were all the same to them. The insurance price for a fully covered car was tied strictly to the vehicle’s value.