• MAX Insurance Agency

FAQ: Why does my insurance premium go up?

By Kim Bronder


Did your insurance premium go up from last year’s premium? Seeing an increase in your insurance can be confusing, and sometimes frustrating if you aren’t sure of the cause.


Check out the list below for common factors why insurance premiums increase:


Loss of a discount

There are several discounts that are applied to insurance policies. For example, if you used to have a multi-policy discount but cancelled one of your policies, you will no longer receive the multi-policy discount, which will increase your premium. Similarly, you may have lost a claims-free discount.


Added coverages

If you added or increased coverage in the middle of the previous policy, you would have been charged a pro-rated amount for the coverage. Now that your policy has renewed, you are seeing the charge for the full year premium.


Inflation guard (homeowner’s insurance)

Your homeowner’s insurance likely has inflation guard included in the policy. This increases the replacement cost coverage on your dwelling a little bit each year to keep up with inflation, increased labor and material costs in your area. Inflation guard helps keep your home accurately covered in case of a total loss. The increase in coverage will in turn increase your premium.


Violations or accidents (auto insurance)

It’s no surprise that a company will increase your rate when you or a family member had a driving violation or accident. However, you may not always see the premium increase right after you get a ticket or have an accident. Most companies do not run the Motor Vehicle Report (MVR) every time your policy renews. This means that it is possible that you got a ticket last year, but the MVR was not run until the most recent renewal, so you are seeing the increase now instead of when you initially got the ticket.


Rate increase

Last but not least is the rate increase. These are generally statewide overall rate increases (or even a decrease). A company may change their rates due to a large number of claims in the region in the past year. When there are more claims in a given year, rates are often increased to be sure the insurance carrier can continue to pay claims in the future.


If your premium has increased and you aren’t sure why, one or more of the reasons above could be the cause.


You can always give us a call at 800-832-4689 or complete our Check Coverage form to review your policy, whether you are a client or are shopping around for insurance. We would love to help you with your home, auto, farm, church and small business insurance.



Kim Bronder

Avid traveler, Mom of Three Daughters, and Insurance Agent

Direct Phone – 913-754-3807 kbronder@maxinsurance.com

Kim has been with MAX since 2011 and has over 20 years of experience in the insurance industry. When Kim is not at work, she loves to travel, cook and read. Kim and her husband of 35 years are involved with Retrouvaille, a ministry that helps married couples strengthen and heal their marriages. She has three grown daughters, two sons-in-law and two grandchildren. Kim enjoys the spring and summer months where she can tend to her garden.

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