Mapping The Insurance Maze

WHATTTT IS THIS! Why are my RATES GOING Up!

As a policy owner, your rates can increase for many reasons.

Some of the top reasons can be:

• Increase in rates across the state.
  • The sad truth, accidents cost. Property Damage costs. A method to address this is a blanket increase in insurance across the state.
  • This is often probably one of the most frustrating reasons for a policy owner, because they may have not done anything, and they are hit with a rate increase. Increased fraud, fake claim filings, lack of maintaining homes from policy owners can all attribute to a rate increase across the state.
• Claims History
  • Based on how many claims you’ve had or not had, can impact your rates. If a policy owner habitually files claims, they may find themselves on the receiving end of a rate increase. What’s worse, is that too many claims may find you non-renewed.
• Change in Insurance Risk Score
  • Every person that has a consumer score, think Credit Score, has an Insurance Risk Score. It’s basically your credit score for your Insurance profile. Things that can affect your score include claims history, how often you make/miss payments, longevity, insurance coverage limits. The better your Insurance Risk Score, typically the better your insurance rates.
• Changes in the occupancy/usage/vehicle
  • This is one of those reasons that many don’t think about. Imagine remodeling the home, and increasing its value by $50,000. With the remodel, your policy limits should be increased, because in the event of a loss, your home and the materials cost more to replace. If you purchase a newer vehicle, that vehicle may cost more to replace than an older vehicle, thus your insurance rates may increase. It doesn’t always, but it may.

Mike’s recommendation is, whenever you run into an issue with your rates, before becoming upset, reach out to your insurance company. If you have an Agent, sit with them. Ask them to engage the Underwriting Dept. to see what the reasons are. It could be something simple like, you’ve had a discount, and the discount aged, or it maybe a statewide increase. Regardless, a good Agent will do what he or she needs to do to make sure you have the best coverage to fit your needs and budget.

~ Til Next Time