Think Your Insurance Rates Went Up for No Reason? Think Again.

If your latest insurance renewal came with a surprise increase in your premium, you're not the only one — and you're definitely not imagining things. Every day, we hear from customers asking the same question: “Why did my rate go up when I haven’t filed a claim or changed anything?” It’s a fair question, and one that deserves a clear answer.

There’s a massive misconception out there: that insurance rates are based only on individual behavior. People assume their rate is tied solely to whether they’ve had an accident, made a claim, or missed a payment. But the truth is, insurance premiums are affected by much more than that. The biggest reason rates have been going up lately? A sharp increase in claims — across the board.

Insurance operates on what’s called a shared risk model. That means your rate isn’t just about you — it’s about the entire group of people in your area or risk category. When the number and cost of claims increase significantly, everyone in that pool can see higher premiums, even if they’ve personally never filed a claim.

Let’s break it down. Over the last few years, claim activity has surged in almost every sector of insurance. In auto insurance, we’ve seen a rise in accidents due to distracted driving, more expensive repairs due to advanced vehicle technology, and an increase in total loss payouts. In home insurance, weather-related events like windstorms, hail, flooding, and wildfires have become more intense and more frequent, leading to higher costs for repairs and rebuilding. Add to that rising construction and labor costs, and insurance companies are paying out more than ever before.

But it doesn’t stop there. Liability claims are also increasing. Whether it’s a slip-and-fall on someone’s property, a dog bite, or a business liability suit, legal costs and settlement amounts are steadily climbing. And unfortunately, insurance companies have to account for all of this when setting rates — not just for the people who’ve filed claims, but for everyone.

This has created what many experts are calling a claims crisis. With more money being paid out in claims than in previous years, insurance providers must raise premiums to maintain financial strength and remain able to pay future claims. In short, even if you’ve done everything right — no accidents, no claims, no changes — you can still see an increase because you’re part of the larger system.

We get it: this can feel frustrating, especially when you’re a responsible policyholder. We want you to understand what’s happening, and more importantly, we’re here to help you navigate it. There may be ways to reduce your premium, such as bundling policies, increasing your deductible, or qualifying for discounts based on home security upgrades, and agency loyalty. Sometimes coverage amounts need to be adjusted to reflect current rebuilding costs or vehicle values, and these small changes can make a difference.

The bottom line? Your rate likely didn’t go up because of something you did. It went up because of what’s happening all around us — the surge in claims that’s impacting the entire industry.