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What You Didn’t Know About Rising Insurance Premiums

Rising insurance premiums

Many people have probably glanced at their statements and saw that the price that they’ve been paying for the past few months ended up mysteriously rising in cost.

 

The trouble with rising  premiums

 

It takes a lot of people by surprise, too—a lot of people usually don’t know that the things that they might do could potentially increase that premium they’ve been paying. After all… sometimes, the tiniest change can affect an entire premium… even when you least expect to see it.

 

Much of the ‘blame’ of rising Florida insurance premiums can be traced to the insurers themselves. Many Florida Insurance companies have their own standards and rules that help them efficiently calculate rates that are suitable for individual customers. So, not two customers actually have the same ins. rate for that reasons.

 

Though, is there a real reason why some customers just seem to have lower Florida Insurance premiums than others? Of course, there’s a reason. That main reason involves the fact that their own personal records may be influencing the low costs. The better those records look to insurers, the better their rates get.

 

Why your  premium may be rising….

 

Many insurers look for the ‘smallest’ reason to potentially increase a premium, mainly due to the fact that some customers may be more likely to file a Florida Ins. claim than others. That’s one of the reasons why these customers tend to pay ‘a little’ more than others who may be less likely to file a claim.

 

The influences

 

Credit scores. Your credit score is a lot more influential than you think. Many Florida Insurance companies use your credit history and, subsequently, your credit score to determine how much they should ‘price’ your premium. Some states, however, don’t allow insurers to set  rates by using a customer’s credit score as an influence.

 

Claims history. If you’ve made a claim at any point, your insurer will have already shared that particular information via the Comprehensive Loss Underwriting Exchange (CLUE), which will allow other insurers to see the information. So, if they see that there’s anything in your claims history, other insurers may use that information to potentially ‘boost’ your rate.

 

Location. Sometimes, your location will affect the cost of your premium. This usually happens when your location (usually determined through zip code) hosts many former and current customers who may have made claims in your area. Due to that information, some insurers in one area may charge more than others in a completely different zip code.

 

Personal history. Insurers often take personal information into consideration when determining rates. For people looking for car insurance, it’s usually their driving record and the claims history of similar drivers.

 

People looking for health ins. may be offered higher or lower rates, based on their personal health history and their family’s health history. Some employer health insurers may based rates on the health and claims history of an entire workforce.

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