Why is my rate going up?

By Lexi Myer

Rate Up Word Cloud

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

  1. 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
  2. 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.
  3. 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.

About Lexi

St. Louis Cardinals fan, Mom of one daughter and one son, and Insurance
Direct Phone – 913-754-3836

Lexi Myer

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.