Want to know why insurance premiums increase? That is not a simple question. There are many contributing factors that go into this and this topic particularly demonstrates clearly the value of having an agent. Both yourself and your agent can discuss some of these factors and determine if the increase constitutes shopping and going to the market for a new policy at a market competitive premium.
Premiums increase even on claims free policies and here are some of the reasons:
- Number of claims in the industry: Increased number of claims=increased premium. This includes fraudulent claims
- The economy with the levels of protection and risk involved
- Weather related events and climate change
- High number of losses and claims in your zip code can make premiums increase even if you have not had a claims
- Increased cost of claims in an industry that make claims handling more expensive
These are some of many reasons in a complex industry. If you have questions or want to discuss your premiums give you agent a call. If you do not have an agent, let us know and we will be happy to help.