Why Are My Personal Insurance Premiums Increasing? 

You’re not alone if you’ve noticed your personal insurance premiums rising recently, whether for auto, home or renters coverage. Insurance rates can shift for various reasons, some related to your profile and others to broader industry or environmental changes.

Individual Risk and Claim History

One of the most common drivers of a premium increase is a change in your personal risk profile. This might include a recent accident or even a speeding ticket. Insurance is priced based on risk, so if your activity suggests a higher likelihood of future claims, your premium may reflect that.

In addition, updates to your credit-based insurance score (in states where it’s allowed), a change in coverage limits or adding a new driver or property to your policy can contribute to a rate adjustment.

Filing a claim against your insurance can also cause your rates to go up, as this typically indicates to carriers that you’re more likely to file additional claims in the future.

Wider Market and Environmental Factors

Sometimes premiums rise even when nothing in your personal history has changed. That’s often due to factors outside your control. In recent years, supply chain delays, labor shortages and rising repair costs have made claims more expensive to settle, whether it’s replacing a damaged roof or fixing a vehicle after a collision.

Natural disasters and severe weather events have become more frequent and costly for property insurance. Even if your home hasn’t been directly affected, these events can drive up overall risk in your region and impact how premiums are calculated.

Increased medical costs and legal expenses have also affected auto and liability coverage across the board. Insurers may need to charge more for various types of insurance to account for higher projected claims costs.

Learn More

If your premiums have increased and you’re unsure why, reviewing your policy with a licensed agent can offer helpful insight. Sometimes, a slight adjustment in coverage or a fresh look at available discounts can help balance the difference.

Contact Above All Insurance in Phoenix, Arizona, today to discuss your policies and find ideal rates.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.