Why did my premium increase?
/You have likely noticed an increase in your insurance premiums, and you are not alone. Rates have gone up across all lines of insurance and with all companies. Here are several reasons why:
Increased Risk Factors: If there have been changes in your circumstances or in the insurance industry that increase the risk associated with insuring you, such as an increase in accidents or claims in your area, your premiums may go up.
Inflation: Insurance premiums often rise in line with inflation. The cost of goods and services increases over time, including the cost to repair or replace insured items, which can lead to higher premiums.
Claims History: If you've made claims in the past, especially if they were large or frequent, insurers may raise your premiums as you're considered a higher risk. Even smaller claims such as glass can impact your tiering.
Policy Changes: Your insurance company may have made changes to their policies or coverage options, which could affect your premiums.
External Factors: Economic conditions, natural disasters, or changes in government regulations can also impact insurance premiums industry-wide. Increasingly large settlements are a major factor here in NYS.
Personal Factors: Changes in your personal circumstances, such as moving to a new area or adding a new driver to your policy, can also lead to increased premiums.
Insurance Market Trends: Sometimes, insurance premiums increase across the board due to broader market trends, such as rising healthcare costs or increasing frequency of extreme weather events.
It is advisable to discuss these things with your agent. They are there to help guide you!