Why did My Insurance Premium Increase when I Haven’t had a Claim with my Insurance Carrier?

There are many reasons you could see insurance premiums increase, even if you have not made a claim. The main reason is based on the profits and losses experienced by the company. Most insurance providers use policy premiums to pay claims. If there have been a large number of claims, insurance premiums increase accordingly. Usually the insurance carrier is only allowed to make an increase like this once or twice a year. If you have now found you are unable to make your insurance payment, your best option will be to shop around for more affordable quotes on the same type of coverage.

Another reason insurance premiums increase is because you have moved to a new location or if you have made changes in your policy. Depending on where you live, there may be more risks for certain types of hazards such as theft. In this case, the insurance provider may increase your premiums to account for the increased chance you may need to make a claim. Additionally, if you have made changes to your policy, such as reducing your deductible, this could also mean an increase in your premium. Insurance companies use a formula to calculate how much you will pay for your coverage. When any type of change is made, this can either increase or decrease the amount of your payment.

Remember, shopping around for quotes on insurance should be considered once or twice a year. When your policy is up for renewal is a great time to see if you could save some money by working with another insurance carrier. You can find affordable quotes online in minutes and then compare the company that will give the best rates for the best coverage.