Finding out that your insurance premiums just went up when you’re about to renew them can be quite a bummer, especially when you least expect them. However, it’s not uncommon for insurance premiums to go up because a lot can change over the course of several months or years when your policy expires. During this time, insurance companies reevaluate their risk profile based on several factors, and they become aware of certain facts as they develop.
Let’s take a look at the main reason why your insurance premiums may go up.
You Have a History of Filing Claims
The more you claim you file, the more you are deemed to be a risk to insurance companies. This will be reflected in your insurance premiums. However, your insurance premiums may go back down if you don’t file another within a certain period of time.
Dangerous Weather
The number of extreme weather events has been on the rise in recent years, including hurricanes, wildfires, and storms. As these weather events visit your area more frequently, insurance companies will appraise their rates to reflect their level of risk.
Increase the Value of Your Property
In the case of real estate, the value of your property may rise after your policy expires. This will, of course, reflect on your insurance premiums because of the higher risk that it presents to insurance companies.
Rising Crime Rate
If the local crime rate in your neighborhood increases, so too will your risk of becoming a victim of burglary or vandalism. Once insurance companies determine that the risk is high enough, your insurance premiums will go up.
Low Credit Score
This may come as a surprise, but credit scores are often used to evaluate your risk profile. Many insurance companies have determined that people with low credit scores are likely to get into more accidents than people with high scores. This often means that they will charge you more in insurance rates if you have a lower credit score. Note that California prohibits insurers from using credit scores when deciding insurance premiums. This makes it necessary to improve your credit score.
Insurance Adjusters NYC
These were just a few reasons that could affect your insurance premiums. If you aren’t aware of any of the items listed here that are occurring in your area, you may contact your insurance company to ask for more information. Your insurance company may provide you with a valid explanation for the rise in insurance premiums.
Contact Affiliated Adjustment Group for more information on the matter.