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Why Does My Home and Auto Insurance Keep Going Up?

Has your home or auto insurance premium recently gone up? There are a lot of factors that go into determining the insurance premium a person might pay, and those factors are constantly changing. Understanding why your rates are changing can help you plan for future purchases and help you save money. Here are just a few factors that can cause your insurance premium to increase:

Miles driven are increasing

According to, drivers in cars, trucks, minivans and SUVs put a record 3.22 trillion miles on the nation’s roads last year, up 2.8 percent from 3.1 trillion miles in 2015. Lowered gas prices have added to the number of cars on the road and a strengthened economy has lowered unemployment, which means more people are driving to work. More people on the roads increases the risk of you having an accident.

New cars cost more to fix

New cars cost more to insure because of the technology and training required to repair them. Yes, it is true that new cars have advanced safety features that help keep premiums down, but technicians need additional training to make repairs. The sophisticated technology on new cars is also directly affecting the cost of repairs. The extra cost is passed on to the consumer, including insurance companies. Directly leading to a spike in insurance premiums.

Changes in Lifestyle

Many changes in lifestyle can affect your home insurance premium. Moving to an area with a high risk of being affected by weather like hurricanes, tornadoes, floods, snow and ice storms may produce more claims, which leads to an increase in home insurance premiums. Your current rates could also increase if the events listed above cause the claims in your area to rise.

Distracted driving

According to the Wall Street Journal, insurance premiums are expected to go up by an average of 8% across the United States because of distracted driving. 40,200 people died in car accidents last year, which is 14% more than 2014 and is being directly attributed to distracted driving. The increase in accidents means higher cost for the insurance companies, and the insurance companies pass that cost on to the customers.

Have you had unexpected changes to the price of your insurance policy? At Insurance Protection Specialists we can help you avoid unexpected changes. Call 601-992-4040 or stop by our Flowood, MS office and see what we can do for you.