Insurance premiums are calculated based on how much it will cost to replace or repair your home or vehicle as well as your overall risk. Your overall risk is broken up by several factors that can impact your auto insurance such as your driving record, claim history, your age, credit score, zip code, the make and model of your car and the type of insurance coverage limits & deductible you choose. Your home insurance premium factors can be based on the age of your home & condition, your zip code, credit score, home safety features, the coverage limits & deductible you choose, claim history and more.
We are seeing a trend that many customers continue seeing an increase in auto and home insurance premiums at renewal, even if their overall risk has not changed.
Home insurance has increased because construction costs have gone up due to a shortage in building materials and labor. Not only has there been a shortage in materials and labor, but the cost of materials and labor wages have also increased. Lastly, there has been an increase in home insurance claims due to natural disasters. Anytime an insurance carrier experiences an increase in insurance claims, they will increase their future premiums for customers. This can even extend across state lines.
Car insurance has also gone up for several reasons such as more accidents occurring, a shortage of skilled labor and car parts have increased in price. All these factors make insurance premiums more expensive.
If your home or auto insurance policy premium increased significantly at renewal, don’t panic & give us a call. We represent the top insurance carriers, which means we work for you. We have the ability to shop your current coverage with all of our carriers & provide you with several quotes. This gives you the option to have competitive prices, as well as several choices.
We can also provide you with professional insurance advice. We always want you to have plenty of insurance coverage to ensure you are protected in the event you have to file a claim.
Here are some things to consider when it comes to lowering your premium:
1.) Bundle your home or renters insurance policy with your car insurance.
2.) Stay on top of home maintenance to lower your risk of a claim. A few areas to assess are your roof, plumbing and electrical. Insurance claims can impact your future insurance premium so if there is a way to prevent a claim, this is crucial.
3.) Talk to your agent about an insurance review. When you increase your deductible, your premium gets lowered. Please note if you do experience a home insurance claim, out of pocket expenses would be increased due to a higher deductible.
4.) Ask for a re-quote with other carriers. This is a big advantage of working with a local, independent insurance agency. We have many choices for insurance!
Contact our agency today with any questions or concerns you have about your insurance policy.
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