Why your home and auto insurance costs change

Insurance companies set prices to match the cost of future claims. To do this, insurance companies look at your personal risk factors (the type of car you drive or where you live). But they also look at how much they spend on all claims. https://tdi.texas.gov/consumer/how-are-your-auto-and-homeowners-insurance-costs-calculated.html

Insurance companies determine premiums and rates by looking at you.

Insurance companies use many factors to calculate what they charge a customer. Each company’s premium formula is different.

For home insurance, common factors include:
- Your home’s age.
- Your home’s roof age and material. - Where you live.
- The cost to replace your house.
- Your claim history.
- Your credit score.

For auto insurance, common factors include:
- Your driving record and claims history.
- Where you live and how much you drive.
- Your age, gender, and marital status.
- Your occupation.
- The cost to replace the car you drive.
- Your credit score.

If some of these factors changed since your last renewal, it could raise or lower your premium. This includes characteristics that change over time, such as how much your home or auto is worth. You may see such changes in a policy’s premium from one renewal to the next.

TDI doesn’t have information about your policy or what elements caused your premium to change. Your company should be able to tell you why it raised your premium.

Ask about discounts and shop around.

If your auto or home insurance bill is rising, ask your company to explain the increase and ask if you’re getting all available discounts.

#CarInsurance #HomeInsurance #TexasInsurance

00:00 Why everyone's home and out insurance costs change
00:09 What factors affect your home insurance costs?
00:23 What factors affect your car insurance costs?
00:46 Can your insurance costs change over time?
00:58 Can TDI tell you why your insurance costs changed?
01:10 Insurance discounts - shopping for insurance

Видео Why your home and auto insurance costs change канала Texas Department of Insurance (TDI)