Why Did My Insurance Rate Increase?

July 24, 2023

Insurance rates have been on the rise in recent years, and many people are wondering why. In this blog post, we'll discuss some of the factors that can contribute to an insurance rate increase, as well as some tips on how to lower your rate.

Why do insurance rates increase?

There are a number of factors that can contribute to an insurance rate increase, including:

The cost of claims. When insurance companies pay out more claims, they have to raise their rates in order to cover their costs. This is especially true in recent years, as the cost of claims has been rising due to factors such as inflation and the increasing frequency and severity of natural disasters.

Changes in the law. Changes in the law can also lead to insurance rate increases. For example, the passage of new laws that require insurance companies to cover certain types of losses can drive up costs and lead to rate hikes.

Changes in the economy. The economy can also have an impact on insurance rates. When the economy is doing well, insurance companies may be able to keep rates low because they have more customers paying premiums. However, when the economy is doing poorly, insurance companies may have to raise rates in order to cover their costs.

What can I do to lower my insurance rate?

If you're concerned about your insurance rate increase, there are a few things you can do:

Shop around for a better rate. It's always a good idea to compare rates from different insurance companies before you renew your policy. You may be able to find a lower rate with another company.

Increase your deductible. Increasing your deductible can lower your insurance premium. However, it's important to make sure that you can afford to pay the deductible in the event of a claim.

Reduce your risk. You can also lower your insurance premium by reducing your risk. This means driving safely, avoiding accidents, and keeping your home and car in good condition.

What if I'm still not sure why my insurance rate increased?

If you're still having trouble understanding why your insurance rate increased, you can contact your insurance company and ask for an explanation. They should be able to provide you with more information about the factors that contributed to your rate increase.

In addition to the factors mentioned above, there are a few other things that can contribute to an insurance rate increase, such as:

Your age. Insurance companies typically charge higher rates for older drivers.

Your driving record. If you have a history of accidents or traffic violations, you're likely to pay higher rates.

Your credit score. Insurance companies use your credit score to assess your risk. If you have a good credit score, you're likely to get a lower rate.


If you're concerned about your insurance rate increase, it's important to understand the factors that contributed to it. This will help you make informed decisions about how to lower your rate in the future.

Here are some additional tips from Scott Taylor, Vice President of Web Insurance:

Review your policy annually. This is a good time to shop around for a better rate and make sure that your coverage is still meeting your needs.

Ask about discounts. Many insurance companies offer discounts for things like good driving records, anti-theft devices, and paid-in-full policies.

Be prepared to negotiate. If you're not happy with your rate, don't be afraid to ask your insurance company to lower it.

I hope this blog post has helped you understand why your insurance rate increased. If you have any other questions, please feel free to contact me at 636-410-0624.