Like the cost of groceries, rent, vehicles and utilities; the cost of insurance rarely goes down each year. There are several factors that can cause an increase in your insurance premiums but there are some things you can do to help!

Here are the top reasons why insurance costs go up:

1. Claims/Violations: Claims filed in the last 3-5 years will cause an increase in your homeowners insurance, even if the claim was not your fault. All companies charge more for insurance if you have had a loss. Auto insurance is a little different. If you caused an accident, your insurance company typically will increase your rate. If you were not at fault (such as hitting a deer or hail damage) your insurance company will typically not increase your rate. All violations and tickets will cause your auto insurance rates to increase. Major violations like a DUI may cause the insurance company to drop your policy at renewal.

2. Decrease in Insurance/Credit Score: Most insurance companies use credit based scoring to determine your risk. The better your credit score, the lower your insurance cost. Additional factors that could contribute to your insurance score decreasing are things like your previous insurance history, the population of your zip code and personal information such as your age.

3. Loss of Discount: Some discounts, like an advanced purchase discount or a new home credit, fade away over time. Other discounts, like a claims free discount or multi-policy discount, can be removed if you are no longer eligible.

4. Inflation: In order to keep pace with the yearly increase in the cost of building materials, most property policies include an automatic increase on building coverage. Insurance companies use replacement cost estimators (RCE) to calculate the amount a building should be insured for. Read more about RCEs here. The cost of auto body work and repairs also increases annually. Both factors contribute to the overall increase in insurance costs year after year.

5. Natural Disasters: Insurance is risk sharing. We all pay in premiums and the insurance companies in turn pay out when a claim arises. However, when large natural disasters occur, it can take away from the money the insurance companies use to pay claims. If too many disasters occur in a year, it may be necessary for insurance companies to raise rates in order to pay the claims.

What you can do to help:

1. Keep a clean driving and claims record: Stay alert! Buckle up! Don’t txt and drive!

2. Ask your agent to re-run your Insurance/Credit Score: No personal credit information is released to your agent and it doesn’t hurt your credit score. All your agent sees is a number. Why not check it?!

3. Make sure you are getting all the available discounts: Download our discount checklist here! You might be surprised by the number of discounts you’re missing!

4. Review the amount of coverage on your property: New kitchen? Renovated bathroom? How about that finished basement? Or maybe you’d replace your plaster walls with drywall in the event of a loss. Reviewing your coverage may give you options, you didn’t know you had!

5. Bundle! The best rates are when you have your home and auto insurance with one company. Keeping them together provides peace of mind that one company has your back!

All of this can seem like a lot, but you don’t have to do it alone. Let us help!

As an Independent Insurance Agency, we have access to several top rates carriers, allowing us to provide you with the best insurance, for the best price.

Call us today to review your insurance policies, 419-332-3411.

Or click here for an online quote request and we’ll call you!