Insurance premiums are set in stone and can’t be changed | Insurance Myths

1. Lifestyle Changes
Getting married, buying a home, retiring, or even moving to a new ZIP code can alter your risk level and affect your premiums.

2. Claims History
A record of frequent claims may lead to higher premiums, while a clean claims history can help you qualify for discounts.

3. Driving Habits
For auto insurance, things like reduced mileage, improved driving behavior, or completing a defensive driving course can lower your rates.

4. Credit Score
In many states, your credit score is a pricing factor. Improving your credit can have a positive impact on your premiums.

5. Policy Changes
Adjustments to your policy—like increasing your deductible, adding or dropping coverage, or bundling policies—can influence your overall cost.

6. Market and Environmental Factors
Here’s where many people are caught off guard: insurance companies also adjust premiums based on external factors such as:

• Inflation and rising repair or construction costs

• Natural disasters and climate risks

• Regulatory changes

• Investment returns and economic cycles

Even if you’ve never filed a claim or changed your coverage, these macro-level trends can lead to premium increases across the board.

⬇️How to Potentially Lower Your Premiums

While you can’t control the economy or the weather, you can take smart steps to improve your risk profile and potentially reduce your premiums:

✅ Bundle Policies
Combining auto, home, or other types of coverage with the same insurer often qualifies you for multi-policy discounts.

✅ Maintain a Good Record
Avoiding claims and tickets can help keep your premiums low over time.

✅ Ask About Discounts
From safety features to professional affiliations, there are often discounts available—you just have to ask.

✅ Update Your Information
Inform your insurer about any lifestyle changes (like working from home or installing a home security system) that could lower your perceived risk.

🔎Don’t “Set and Forget” Your Policy

Insurance isn’t something you should set once and ignore. As your life changes and market conditions evolve, it’s important to review your policies regularly. You may discover opportunities to save money or improve your coverage.

While some factors influencing premiums are out of your hands, many are within your control. By understanding how premiums are calculated and taking proactive steps, you can often find ways to reduce your costs while maintaining adequate coverage. Contact us with any questions you may have. We’re here to help you make sense of your coverage and keep it working for you.