We've all experienced the increase in cost of goods and services over the past several years, so it's logical to anticipate that your insurance premiums might increase some, too. However, the amount of increased cost has taken some policy holders by surprise.
There isn't simply one major reason but a number of factors that have caused insurance premiums to rise.
In addition to increasing rates, insurance carriers have also tightened requirements for insurance approval and/or renewal. Just like with increasing premiums, clusters of factors have made it more complicated to identify and predict risk.
Technological advancements like machine learning and artificial intelligence have given insurers a more accurate way to predict risk by using huge volumes of data.
So what kinds of data are now being used to modify (and tighten) criteria for insurance policy approval? Here are 3 lesser known factors you should be aware of that affect your perceived financial stability by insurers:
As 2023 has wrapped up, it's time to re-evaluate your insurance plans. Why? Because changes you and your family experienced during 2023 or upcoming ones you expect this year will impact your insurance requirements.
Common examples include:
It's football season and time to enjoy the cooler temps and social events like tailgating.
If you're taking to the road to your favorite football game, drinking and driving can be one of the most expensive mistakes you can make, not to mention the legal, physical and emotional tolls.
Do you know when you get a DUI, when it will show up on your insurance, how much to expect it to go up, and how long before it falls off your motor vehicle record (MVR)?
Insurers are tightening their standards and restrictions so before you call to file a homeowners insurance claim and have it denied, ask yourself these questions:
- Do you know specifically what your policy covers/excludes?
- Was the damage from a sudden, acute circumstance or from a chronic issue over time?
- Have you taken photos/videos to document the damage?
- Have you spoken with your insurance agent to get his guidance on how you should proceed?
It's very important you have this information BEFORE you contact your insurance company about the damage.
Let's take an example:
Have you ever heard of the term "subrogation" when investigating insurance but really don't understand it?
It's a legal term that is more commonly applied to auto insurance claims, and you need to understand what it is in case you ever need to use it.
So buckle up and let's dive into: 1) what auto insurance subrogation is; 2) when you should consider using it; and 3) when you should NOT use it.
Many insurance policy holders are getting a big surprise when they receive their upcoming renewal notices.
The news in a nutshell?
Losses on the part of insurance companies are finally being seen in premium increases in renewal notices... AND as important, if not more so:
insurance companies are also pulling out of certain states or disallowing new and policy renewal approvals.
Why the sudden action on the part of carriers?