Navigating the road to affordable car insurance can be a complex journey, but for drivers across the Volunteer State, some good news is on the horizon. Auto Quote Tracker uncovered an upcoming rate cut from MemberSelect Insurance, a AAA carrier.
MemberSelect was recently approved to adjust its auto insurance premiums in the state of Tennessee by -10%, a welcome decrease for its nearly 12,000 policyholders. This change is scheduled to impact renewal business beginning on September 1, 2025 and will reduce total written premiums by over $1.4 million across the state– translating to a decrease of $136 per policy.
Whether or not you’re insured with MemberSelect, this change is a reminder to re-evaluate your coverage to make sure you’re getting the best deal.
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Understanding the Factors Behind Rate Changes
This adjustment may raise questions for many consumers, particularly in contrast to the typical upward trend of insurance rates. So, what drives insurance companies to adjust their pricing? The core of an insurer’s business is to accurately assess and price risk. Premiums are set based on a comprehensive analysis of various data points to ensure the company can cover the costs of claims, administrative expenses, and maintain financial stability.
Several key factors influence these decisions:
- Claims Experience: This is perhaps the most significant factor. If an insurer experiences a period of fewer claims or a decrease in the severity of accidents, they may find they have a surplus of funds. Conversely, a spike in claims—due to an increase in traffic accidents, severe weather events, or an escalation in the cost of car repairs and medical treatments—would necessitate a rate increase to cover those costs. The recent adjustment from MemberSelect suggests an improved claims experience in Tennessee.
- Economic Conditions: Inflation has a direct impact on the cost of car insurance. The rising cost of auto parts, labor for repairs, and medical care for injuries sustained in accidents can all push premiums higher. When these costs stabilize or decrease, it can pave the way for rate reductions.
- Regulatory Environment: State and federal regulations can also play a role. Changes in insurance laws or a shift in the regulatory climate can impact how insurers operate and price their policies.
Your Guide to Finding Affordable Car Insurance in Tennessee
The MemberSelect rate decrease is a fantastic opportunity, but it’s just one piece of the puzzle. Finding affordable and reliable insurance in Tennessee requires a proactive approach. Here’s a guide to help you take control of your car insurance costs:
1. Shop and Compare Quotes: The number one rule for saving on car insurance is to never settle for the first quote you receive. Even if you’ve been with the same insurer for years, it’s wise to get new quotes annually to ensure you’re still getting the best rate. You can use an online comparison tool to gather multiple quotes at the same time.
2. Increase Your Deductible: Your car insurance deductible is the amount you pay out of pocket before your insurance coverage begins to pay. By choosing a higher deductible, you can significantly lower your monthly or bi-annual premium. Just be sure you can comfortably afford the higher deductible if you ever need to file a claim.
3. Maintain a Clean Driving Record: This is a simple but powerful strategy. Accidents and traffic violations on your record can drive up your premiums for years. By being a safe and responsible driver, you can earn safe-driver discounts and avoid surcharges.
4. Bundle Your Policies: Many insurance companies offer a multi-policy discount if you combine your auto insurance with other policies like homeowners, renters, or life insurance. This is a simple way to save money on your overall insurance costs.
5. Ask About All Possible Discounts: Don’t assume you’re automatically getting every discount you qualify for. Ask your insurer about available discounts, which could include those for being a good student, for military service, for driving a car with certain safety features, or for taking a defensive driving course.
6. Keep a Good Credit Score: In Tennessee, your credit-based insurance score is a factor in determining your premium. A good credit score can signal a lower risk to insurers, often leading to a better rate.
Lock In Your Savings
The upcoming rate decrease from MemberSelect Insurance Company is a clear win for many of its policyholders. However, it also serves as a perfect moment for all Tennessee drivers to take a hard look at their own policies.
By proactively shopping for insurance and keeping an eye on upcoming changes, you can stay ahead of any price increases to secure the best deal. Sign up for Auto Quote Tracker to get notified when your rates are set to change– even before you get a renewal offer.
