My premium is going up when I haven’t made any claims, why is that?

Incision Indemnity
General -
18th March 2024
2 mins read

Ever wondered why your insurance costs are going up, even though you haven’t made any claims? It’s not just about your personal history—it’s a mix of many moving parts in the insurance world. Here’s what influences rising premiums:

1. Claims Trends:
The larger picture matters. If overall claims are going up, it can affect everyone’s rates, regardless of your personal claims history.

2. Financial Factors:
Inflation and market conditions can play a big role. They impact what insurers pay out for claims and what they spend to run their business, which ends up affecting what you pay.

3. Defence Costs:
It costs more each year to defend claims. High-end lawyers and their strategies contribute to these rising expenses.

4. Insurers’ Decisions:
Insurance companies might change their approach based on what’s happening in the market. They might increase rates for specific procedures or places to make sure they have enough
money set aside for possible future payouts.

Changes in one area can have a knock-off affect on other areas, so even if you are not filing claims, other people’s losses can bump up everyone’s premiums.

The volatility of the financial world, inflation rates and what it takes to run an insurance business can result in higher premiums for everyone. Additionally, rising lawyer fees, driven by competition for the best ones, push premiums up even further.

Understanding these factors can give you an understanding of why your premiums might be increasing. It’s not just about your own actions – it’s part of a bigger system influenced by many increases in the insurance world.

Stay informed and contact one of our team for more information and advice.