There is nothing worse than receiving the dreaded letter in the mail that your car insurance premium is increasing. This can feel like a kick in the gut. Although you have to buy insurance if you are going to drive, there is no law saying that you have to overpay.

From time to time, you may expect your premium to increase. The problem comes into play when this happens all too often. You have three options:

• Continue to pay the increased premium
• Negotiate a better deal with your current company
• Begin to consider other providers

Before you bail out and begin to shop around, you should give your current company the chance to keep your business.

Here are three steps to take if your premium increases:

1. Contact Your Agent

Discuss your policy as well as the recent increase. Simply put, you deserve an answer as to why your premium has increased once again. If you are unable to get an answer, no matter the reason, it is time to move on. Fortunately, most agents are willing to discuss your situation and lend insight as to why your premium has increased.

Tip: there is no reason to be rude or threaten to take your business elsewhere. Remember, you are in the driver’s seat. At any point you can walk away and find a new provider. This is a time for you to explain your situation to your agent in hopes that they will make things better.

2. See What Else is Out There

Just because you request quotes from other providers does not mean you are making a change. In today’s world, it only takes a few minutes to request multiple quotes via the internet. Soon enough, you will have a clear understanding of whether your current company is charging too much.

Don’t be surprised if you find that other companies can offer the same coverage at a lower price. If this situation presents itself, you are in good shape moving forward. Give your current agent a chance to match the deal. If he or she is not able to do so, you know that you can fall back on one of the other quotes.

3. Make a Final Decision

Some consumers are only interested in the cheapest car insurance policy, even if it means changing providers every so often. Others understand that loyalty is important and are willing to stick with their current agent as long as their premium is reasonable.

Tip: be patient when making a final decision. This is an important piece in your financial puzzle. You don’t want to make a rash decision that you may regret in the near future.

There is nothing worse than having your car insurance premium increase. However, the way that you deal with this will go a long way in determining whether or not the problem lingers. With the tips above, you can deal with any increase that comes your way. You may be annoyed at the first sign of an increase, but you should always know that you have options.