What Causes My Personal Insurance Premiums To Go Up?

What Causes My Personal Insurance Premiums To Go Up?

A Personal Insurance Update

Everyone needs personal insurance to protect them from unknown accidents and claims.  Personal insurance can include; homeowner’s insurance, renters, condo owners, auto, boat, personal umbrella, vacation rental, RV, motorcycle, identity theft, and much more.

Premiums are based on a number of factors, some of which are in your control, and some are out of your control.  Let’s briefly look at factors that are out of your control.

  • The profitability of the insurance company.
  • Major losses, such as earthquakes, storms, and wildfires.
  • State and federal regulations that oversee the insurance industry.
  • The passing of new laws.
  • Competition among insurance companies.
  • Other financial indicators, such as the stock market.

These items can impact your personal insurance costs but are such that you don’t have control over.  There are, however, many things in which you do have control over, and we can help identify which of these would help you the most in reducing your premiums or keeping your cost as competitive as possible.

What You Can Control

Use an independent to help you market your insurance. Independent agents have access to many good insurance companies and can get you the best possible combination of coverage, price, and service.  An agent can compare prices from dozens of insurers for you.

The kind of car you drive is one of the biggest single factors when it comes to your auto insurance.  The more expensive the car, the more your premiums will be.

Where you live will help determine your homeowner’s insurance premiums.  Do you live closer to a fire station? If so your premiums will be lower.  If you live out in the country where there is little fire service, you may pay more.

The age of your home also will impact your insurance costs. Homes that have not been updated or maintained will also see higher insurance premiums.

If you have teen drivers living with you, your auto insurance will be higher than those families that do not have teen drivers.

The level of coverage you decide to buy has a direct impact on your premiums. For example, if you want liability limits of $1,000,000, you will pay more than someone who selects $500,000.

The replacement value of your home will have a direct reflection on your home insurance premiums.

The amount of your deductible will also have a direct impact on your premiums. The higher the deductible, the lower your premiums.

The number of claims you make against your policy can impact your costs. Generally, insurance companies don’t penalize you for one claim, but having many claims will cause your premiums to increase.

The type and quality of the construction of your home can determine your premiums. For example, brick homes tend to burn less than wood construction.

Our Top Tips On How To Reduce Your Premiums

Home & Renters Insurance

  • Have us shop for your insurance?
  • Raise your deductibles.
  • By your home and auto form the same insurer.
  • Look for discounts that are offered by insurers.
  • Install a security system.
  • Maintain good credit.
  • Stay with the same insurer to obtain customer loyalty discounts.
  • Pay your bill in full

Auto Insurance

  • Have us shop your insurance?[SR1] 
  • Raise your deductibles.
  • By[SR2]  your home and auto form the same insurer.
  • Look for discounts that are offered by insurers.
  • Reduce coverage on older cars.
  • Take advantage of low mileage discounts.
  • Have teens take and pass student driver courses.
  • Be a safe driver; don’t get any tickets.
  • Install anti-theft devices
  • Review coverage and only buy what you need.

We currently serve numerous satisfied businesses and residents with our personalized service, sound risk management principles, quality carriers and progressive pricing.  

Our agents at Heaton Bennett Insurance will take the time to help you understand all your risks and assist you in evaluating whether your particular situation requires additional coverages in your Texas home insurance plan.

So, contact us today, at (512) 372-8311 to find out more about home insurance in Austin, Texas including the Cedar Park, Georgetown, Lakeway, Pflugerville, and Round Rock areas.



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