By Lexi Myer
One of the most common calls we get at our agency is “I got my renewal, why did my rate go up?” There are several reasons why you might see your rate go up or down from each policy term. You may be able to see some of the changes, but the top three things that we see affecting policy renewal are below.
- A ticket has popped up on your MVR or you have had a claim in the past policy period. If you were getting a claims free discount, then those can fall off causing an increase on your premium. You could also be surcharged for having a very large claim, having a speeding ticket, and sometimes even a not at fault accident. Since these discounts can be significant, this is one of the first places to look.
- There was a rate increase in your state. You likely will not be able to tell this until you talk to your agent. If there are a large number of claims or fraud in the state, the insurance company can request from your state’s department of insurance to take a rate increase in the state. If it is approved, it could affect policies statewide.
- The amount of coverage on your home increased. Many companies have something called inflation guard on home insurance policies that gradually increase the amount of coverage on your home every year. The reason that they do this is to help make up for the increase in labor and building materials each year. Make sure you compare your declaration’s page from last year to see if this could be affecting your rate.
While those are the main factors that we see causing rates to increase, it is always good to check with your agent if you have more questions. If you are concerned, your independent agent can always look to see if you are receiving the most competitive rate where you are currently insured. If you are interested in having an independent agent out of our local Overland Park office review your home or auto insurance policies, give us a call at 913-338-1100 and we would be happy to help you.
St. Louis Cardinals fan, Mom of one daughter and one son, and Insurance
Direct Phone – 913-754-3836
Lexi started at MAX in June of 2016, and has 3 years of experience in the insurance industry. Lexi enjoys spending time with her husband, two children under two, and Chihuahua/Beagle mix Ted. Lexi and her family are big St. Louis Cardinals baseball fans and travel to see them whenever they can. She also works with students of the University of Kansas (KU) as her husband is a campus pastor there.