Why Do Your Insurance Premiums Go Up?

Why Do Your Insurance Premiums Go Up?

How many people have noticed that in their insurance statements the premium they’ve been paying for is rising in cost without explanation? Most of the time, many people are caught by surprise with their insurance premium.  Unknown to them, they don’t realize that the things they do can potentially cause their premiums to go up. At times, the smallest change can have a big negative effect on the whole premium—even when the policyholder least expects it to happen.

Issue with increasing premiums

Lots of the blames about the increasing premiums in Florida can be known to the insurance companies themselves.  Many insurance providers use and apply their own standards that guide them in computing rates most appropriate for their individual clients.  Therefore, no two insured persons have similar rates when it comes to paying their insurance.

Is there a clear cause why some people have lower premiums compared to others?  Precisely, there is a cause for it. The main cause includes the truth that individual and personal records can do something in lowering the cost.  Better premium rates are received if the records of the people appear good to the insurance providers.

Why premiums keep on increasing?

Many insurance companies are looking for the least reason to legitimately increase a premium. Most likely, some insured persons file a claim more than the other insured people. This is the cause why those customers are inclined to pay a little bit more as opposed to those who are less likely to get their claims.

Why Do Your Insurance Premiums Go Up?

The influences

Credit scores 

Bear in mind that your credit scores are far more important than you know.  Lots of insurance companies in Florida use the credit history and then the credit score in determining how far they must increase their client’s premium.  In several states, however, they do not allow the insurance companies to set premium rates by using the credit score that serves as an influence.

Claims history

If you have filed a claim at some point, your insurance provider will have shared already the details through the Comprehensive Loss Underwriting Exchange CLUE, allowing other insurance companies to notice and see that information.  Therefore, if they see anything in your claims history, the insurer can use the details to maximize your premium rate.

Location 

At times, your location can also potentially change your premium cost. It normally happens if your place (usually determined by a zip code) hosts the current and the previous customer who have filed some claims in your place.

Personal history  

Insurance providers often use the personal information when calculating for the premium rate. For the people searching for car insurance, normally it is their driving record as well as the claims history of the same drivers.

For the ones searching for health insurance, they can have either the lower or higher rates depending on their family and personal health history. For some employers, health insurance providers can base the premium rate on claims history and health history of the whole workforce.

To learn more about the causes of the rising insurance premiums in Florida, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N State Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.

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