Insurance Rates Rising Without Claims

Increasing insurance rates is never a good thing at any time, but it is especially hard to deal with when the cost of living across the board is increasing exponentially. Things like severe weather, inflation, credit cards, and more are affecting the insurance rates even when you are not filing claims regularly. It might be time to review your policy and ask your insurer about what can help you to offset these rising costs. The team at Ebensburg Insurance is here to help you navigate this time and answer all the questions you may have. 

Regional Claim Trends and Your Premiums

Insurance companies are setting premiums based on the claims that you file and the ones that are present in your area. If your local area has an increase in activity that requires insurance claims, it may result in increased rates for everyone that lives there, even if they are not directly involved in any of the activities. Because of this, we often see that large cities pay more in insurance rates because there are more collisions and accidents. Even if you are the safest driver in your city, you are paying with the city and not exactly as an individual. This could be something to look into if you see your insurance rates rising without having made any out of the ordinary claims. 

Are Rising Repair and Medical Costs Raising Rates?

In the last five years, the cost to fix a damaged vehicle or home has increased a lot. Recent vehicles are harder to fix than old cars and as a result are more expensive to fix. On top of that, medical costs for collision victims have increased more than it would with inflation rates in the past. Because of this, the cost of auto insurance continues to climb because premiums must adjust to keep pace with the pricing of everything else. On the homeowner’s side of things, building materials and labor costs have also increased. Because of this, the coverage calculations change and the premiums increase here as well. 

Severe Weather and Insurance Premiums

Extreme weather events have become more frequent and destructive over the years. Because of this, the damage they cause is costing more and more to remedy. And, there is more damage each year, which means there are more and more insured losses each year. Unfortunately, residents in states prone to more natural disasters will experience increased premiums to make up for these damages. 

Personal Factors that Could Raise Insurance

Some individual changes you make can affect your insurance rates. In terms of auto insurance, adding a new driver to your policy can increase your premium. Moving to an area that has higher accident rates can raise your rates by association. And, purchasing a more expensive vehicle or even just a new vehicle can change how much you pay. As far as personal finance, you credit score and the number of lines you have can change what you pay and what your rates look like. There are a number of personal decisions that can change your rate, but rarely are they directly related to your insurance. 

Managing Increasing Insurance Costs

While you can’t change inflation or the way the weather behaves, there are steps you can take to keep your expenses in check. The first thing you should do is take a good look at your coverage and confirm that you are getting any and all discounts that you may qualify for. Building out your home and auto insurance with the same provider is usually a great way to lower your cast from the beginning. 

Ebenburg Insurance is Here to Help You and Your Family

Insurance rates are not always simple and straightforward. It can be complicated to figure out how to make changes that work for your situation. Where you live, the car you drive, and your personal finance are all factors in what your bill comes out to. No matter what your insurance rates and premiums look like, the team at Ebensburg Insurance wants to find a policy that is right for you. Contact us today by giving us a call at 814-472-9557 to get a quote!