I’ve never had a claim, so why are my premiums increasing?

At its most basic, insurance is a protection plan where a group of people place money into a common fund. When someone in the group suffers a loss, such as a stolen car, they can use that “just in case” fund to replace the car. The lucky ones will never have to use the fund, but the unlucky ones will be glad it’s there.

If one person consistently dips into the fund, it’s fair for the other participants to require them to pay a little more because they represent a higher risk. Similarly, in a year where many people have losses, or when the losses are particularly large, everyone will have slightly higher premiums the next year to ensure the pool is full.

We’re always working to ensure the rates we charge are based on the actual risks we insure. To continually protect you from life’s uncertainties, we periodically update your rates to accurately reflect your specific property and its risks. That way, we can make sure there’s always enough money in the pool to protect what matters most.

Learn more about how insurance rates are calculated.