Will My Policy Premium Stay the Same Every Year?

Posted on Dec 13, 2018
Will My Policy Premium Stay the Same Every Year?

Because so many things can change in a year, it’s important to review your policy annually to determine which, if any, changes you need to make in coverage. These are some of the things that can affect your policy premiums from year to year.


The unfortunate reality is that insurance is a business of risk. Once you make a claim, you become a higher risk to the insurance company. Whether it’s an auto accident or a fire in your home that causes the claim, the result is often an increase in premiums for the following year.

Rising Home Values

Appreciation for your home is usually a great thing. It means the value of your home has increased in the market year. It also means that you need to re-evaluate your existing homeowner’s insurance to see if it is still sufficient to cover the increased value of your home.

Market Changes

The market in which you live and work has a profound impact on how insurance companies view you as a risk. If the market where you live or work changes and is identified as a higher-risk area by your insurance company, your premiums may increase. By the same token, if it is downgraded as a lower risk area, your premiums may go down.

Driving Record

Your driving record has a significant impact on your auto insurance premiums.  If you have a history of speeding tickets and/or moving violations, your costs will increase. In fact, getting just one speeding ticket can cause your rates to increase. When these tickets and violations “fall off” your record, on the other hand, your rates may decrease.

Different Vehicle

Transitioning to a different vehicle can cause significant changes in your insurance premiums. The age and value of the vehicle will impact your insurance premiums.  The vehicles safety ratings can also change the premium.  Some insurance companies even offer sharp discounts for advanced safety and security features.

Family Changes

Getting married, having children, and even having children old enough to become drivers within your household can affect your insurance premiums from year to year or your need for additional protection and coverage.

One thing that is constant amidst all the changes in store for you is that we are here to help you with all your insurance questions and concerns – along with helping you to find ways to make sure you have the right coverage for your needs at a price you can afford.

For more information, call Otterstedt Insurance Agency at 201-227-1800.

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