It might not be your fault your rates went up

Car insurance rates never seem to go down.

A Hayden reader called to lament that his car insurance premiums rose significantly even though he hadn’t been in an accident or received any tickets. He’s on a fixed income, so the increase puts pressure on his budget.

It turns out external factors beyond our control can affect rates.

The first is the increase in the number of accidents caused by distracted drivers, the costs of which must be shouldered by all insured motorists. Another external factor is the rising costs of vehicles. Loaded to the gills with advanced technology, the prices for repairs have shot skyward. More cars are being declared total losses by insurance companies: They’re just too costly to fix.

Other reasons your insurance rate could jump:

- A change in your credit score. Most major insurance companies differentiate between standard and preferred rates based on credit history. If your score has dropped, it can mean an increase.

- A study by the Consumer Federation of America revealed many auto insurers factor your street address and certain neighborhood characteristics into your rates. Those factors can change over time, prompting insurers to adjust rates.

- Use of roadside assistance through your insurance company. Some insurance companies ding you for using this service and consider it an at-fault claim. Consider a third-party service like AAA.

- Relationship status change. If you divorce or your spouse dies, there’s a chance you may see an increase in your rates. Statistically speaking, married couples file fewer claims.

- If you’re involved in any not-at-fault accident, this could cause your rates to increase.

- Any mileage change in your commuting pattern could affect your rates.

If you feel your insurance is too expensive, it might be time to shop for a less expensive option. If you own a home and have other insurable assets, bundling can be a way to increase savings on insurance. Another possibility: Use a broker to find the best deal. Insurance companies count on the consumer to become complacent with their coverage and typically consumers won’t seek an alternative without a compelling reason.

Scam UPS calls

A Coeur d’Alene reader called about a call he said he received from UPS. The caller identified himself as a UPS employee and even provided a name. He called to inform the reader that he had a package that needed to be delivered but required a signature and wanted to know when the reader would be home.

The caller was adamant someone had to be home for the package to be delivered. He told the reader UPS had sent a letter ahead of the call with this request. The reader never received the letter. He called UPS, which verified they do not call or send letters before delivering packages.

This left our reader wondering if the caller was trying to verify if someone was home or not for another reason than delivering a package. If you don’t recognize the number, don’t answer the phone. If it’s important the caller can leave a message.

Inexpensive cellphone plans update

A couple of Coeur d’Alene readers chimed in on last week’s cellphone column. Our first reader reported having a Jitterbug phone for about two and a half years. Her bill with taxes and fees is $36.70 per month. That included 600 minutes, 700 text messages and 102 MB of internet access. She said customer service has been friendly and helpful.

Our second reader has found a super-cheap plan from Tello. He switched several months ago and has been happy with the phone’s coverage and company’s customer service. His plan includes unlimited text, coverage through the Sprint network, no contract or termination fees. The reviews are great and the website is informative. He pays $5 per month for 100 minutes that carry over, plus $1/mo for 0.5 MB of data. If you don’t need a huge data plan, this could be an inexpensive option worth exploring. Check it out at Tello.com. One nice website feature: Plug in your address to see the coverage in your area.

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If you have encountered a consumer issue that you have questions about or think our readers should know about, please send me an email at [email protected] or call me at 208-274-4458.