Recent reports from Memphis point that that the cost of driving safely in Tennessee and being protect when behind the wheel could be steeper anytime soon. Motorists may be required to shell out extra dollars to pay for auto insurance premiums come 2010. According to a number of insurance providers in the state, a premium rate hike next year can be inevitable as prices of other commodities go up.
One of the major auto policy providers in the state said that they need to increase premium rates as much as 6.5%. Other representatives from other insurers said that a 5% increase can be felt by their customers after the New Year. With majority of drivers in Tennessee relying on auto policy to safeguard themselves and their vehicles on and off the road, consumers are starting to worry that after this holiday’s festivities will come something to worry about come 2010.
According to local motorist groups, a statewide increase in insurance costs can be unfair given that the quality of the service or the levels of protection are not much likely to improve. Leaders of local organizations are finding ways on how they can prevent policy prices from going up by planning on making their issues heard by state officials. One group representative said that if the companies continue to be deaf about the issue, they will be forced to mail written petitions with signatures of Tennessee drivers requesting to abolish any rate hikes.
Meanwhile, Tennessee Department of Commerce and Insurance spokesman Christopher Garrett said that it is still too early for motorists to be alarmed since state regulations mandate that certain approvals must be obtained first prior to any premium rate increase. Garrett adds that the rate of increase that insurance providers announce or formally request to state offices does not automatically translate into a hike in premium prices for drivers, it is only more or less an average.
On the other hand, according to a Tennessee correspondent, the threat mentioned by car insurance companies does not necessarily mean that every driver will spend more as many competing agencies will be more than willing to offer premium prices just to steal another provider’s customers. He advises drivers that anytime they feel a possible rate increase, the first thing they need to do is to contact their agent about the concern. An insurance agent can immediately check auto policies and review it. If an agent fails to meet your expectations, do not be afraid to complain and start looking for other providers you feel comfortable dealing with.