Call Us 941-747-4600 ☰ ˟
Logo
  • Home
  • Get a Quote
    • Auto Insurance Quote
    • Business Insurance Quote Form
    • Flood Quote Form
    • Health Insurance Quote
    • Homeowners Insurance Quote
    • Quote & Bind A Life Insurance Policy
    • Get A Life Insurance Quote
    • Medicare Insurance Quote
    • Recreational Vehicle Insurance Quote
  • Products
    • Automobile
    • Business & Commercial
    • Flood
    • Health
    • Homeowners
    • Life
    • Medicare
    • Recreational Vehicles
  • Resources
    • Refer a Friend
    • Important Links
    • Insurance Glossary
  • Blogs
  • About Us
    • About Us
    • Location(s)
    • Privacy Policy
  • Contact
Icon Auto Icon Home
Icon Business
Icon Life & Medicare Plans
Icon Flood Icon Recreational
Home > Blog > “I’ve Never Had a Claim—Why Does My Insurance Keep Going Up?”
MONDAY, JANUARY 23, 2023

“I’ve Never Had a Claim—Why Does My Insurance Keep Going Up?”

Woman looking up, questions marks around her

This is a common complaint among our customers who find their home and auto insurance rates continue to rise, even when they haven’t had any claims. We know this can be frustrating and we always do our best to find the most competitive insurance rates, no matter what type of insurance our clients need.

As we’ve noted before, the Florida insurance marketplace has some unique challenges, but the cost of insurance is rising in most states. Insurance companies look at many factors when they set their rates, only some of which you can influence—like keeping your driving record clean or improving your credit score. But there are some things which are beyond both your control and your insurance company’s control, factors which are at work in the industry at large. Here are a few things which affect the price of your insurance—even if you, personally, don’t have a claim.

Insurance is a “pool of risk”

First, understand that the central function of insurance is the sharing or pooling of risk. In return for a premium, the insurer agrees to pay for the covered losses of its policyholders. As the Insurance Information Institute (iii.org) rather poetically explains, “If risks—chances of loss—can be divided among many members of a group, then they need fall but lightly on any single member of the group. Thus misfortunes that could be crushing to one can be made bearable for all.” 

Insurance protects against catastrophic loss, and in that role it helps to keep society functioning. We couldn’t get credit to buy a house or car, or to start a business if creditors couldn’t have some guarantee of being paid back in the event of a loss. A family who loses a home and all their belongings in a fire would be devastated without an insurance policy. A small business owner could lose everything if someone sued them after slipping and falling at their business. Insurance helps protect us all from financial ruin.

Claims have become more frequent

So remembering that insurance is a pool of risk, if claims become more expensive or more frequent, everyone in the insurance pool will be affected. Simply put, you may not have made a claim, but plenty of other people have. According to Climate.gov, “In 2021, the U.S. experienced 20 separate billion-dollar weather and climate disasters, putting 2021 in second place for the most disasters in a calendar year, behind the record 22 separate billion-dollar events in 2020.” These events include wildfires, tornadoes, floods, and, of course, hurricanes. Plus, those claims numbers don’t include the more mundane events that take place every day—the fender benders, the burst pipes, and so on.

The cost of everything is going up

This includes the costs to rebuild or repair homes and vehicles in the event of a loss. Home renovations, demand for new construction, and supply chain issues have limited the availability of construction supplies and materials, inflating prices. Auto claims costs are also going up because of similar factors. 

Another significant expense for insurance companies is the rising cost of reinsurance (insurance for insurance companies).

Because of these factors, the cost of doing business has insurance companies scrambling. In order to stay in business themselves, they pass on these increased expenses to policyholders.

Lakewood Financial Services—your independent agency

Despite the cost, buying appropriate insurance is still one of the best ways you can protect your assets. If you want to be sure you’re paying the most competitive rate for your insurance, why not call a local, independent agency like Lakewood Financial Services? Our agents are well-versed in the Florida insurance marketplace and will be happy to answer your questions and give you a quote. We handle personal lines, such as homeowners and auto, as well as business insurance, health, and life insurance. Please call (941) 747-4600, or click here to contact us online. Let us help you find the best insurance coverage at the most competitive price. 

Posted 11:00 AM

Tags: insurance prices, insurance news, homeowners insurance, auto insurance, insurance premiums,
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020

  • homeowners insurance(22)
  • car insurance(9)
  • auto insurance(8)
  • flood insurance(6)
  • commercial insurance(5)
  • medicare(4)
  • insurance premiums(3)
  • hurricane season(3)
  • commercial property insurance(3)
  • business insurance(3)
  • property investors(3)
  • hurricane preparation(3)
  • medicare advantage(3)
  • water damage(3)
  • medigap(3)
  • lawsuits(2)
  • commercial auto insurance(2)
  • homeowners insurance premiums(2)
  • hurricanes(2)
  • fire(2)
  • independent insurance agent(2)
  • independent agents(2)
  • private flood insurance(2)
  • builder's risk(2)
  • life insurance(2)
  • property investors insurance(2)
  • local independent insurance agency(2)
  • insurance news(2)
  • medicare supplement(2)
  • florida homeowners(2)
  • independent insurance agency(2)
  • florida insurance(2)
  • condo(1)
  • umbrella insurance(1)
  • florida tornadoes(1)
  • nfip(1)
  • young drivers(1)
  • ho-3(1)
  • ho-6(1)
  • driving safety tips(1)
  • sb 2a(1)
  • home maintenance(1)
  • deductibles(1)
  • grilling(1)
  • falls(1)
  • flooding(1)
  • allstate(1)
  • pool(1)
  • expensive insurance(1)
  • supply chain(1)

View Mobile Version
Insure your needs today!
Social Social Social Social
Quick Links
Home
Get A Quote
Customer Service
Payment Options
Report a Claim
About Us
Our Carriers
Blog
Contact Us
Location 11015 Gatewood Drive
Suite 101
Bradenton, FL 34211

Ph: 941-747-4600
info@lwfinancial.com
A Pacific Crest Services Affiliate Agent