Why Do Insurance Rates Go Up?


Their are numerous reasons why insurance rates go up but many don’t realize it correlates with the local economy, materials cost and many other factors. Insurance companies do not like to raise rates if they do not have too. Here are the top 5 reasons why your insurance might be on the rise.

Weather or Catastrophic Storms

Weather is one of the biggest factor in your insurance going up in Missouri. Whether we like it or not we have a lot of Storms in our State. With the precense of so much hail, it causes a lot of claims.  When storms cause excessive damage, insurance companies have to paid to fix their insureds homes, businesses or cars.  This can cause insurance rates to be on the rise. For example, back in 2012 Joplin, Missouri was hit with a catastrophic tornado that caused about 2.8 billion in losses. To remain solevant and profitable long term to be able to provide insurance most companies in the area had to raise rates.

Local Economy

Wait just because my local economy is booming my insurance rates can go up?……. Yes that is right, but it mainly correlates with the local economy and this is not the instance in every case. Most times, when the local house market is doing well, home and material costs will increase. This in return can cause your insurance to go up. Why is this???? Anytime insurers pays for a loss their is typically some type of materials involved like shingles, metal, wood ect. As the materials costs rise by 10-20 percent over time, insurance companies are forced to raise rates.

Medical Costs

When Medical costs go up, it have increase both your home and auto insurance. Think about it this way, many auto insurance accidents have some form medical paid out when someone has to visit the hospital. As these costs rise, your insurance company has to pay more money. This in return effects your insurance price.


Many consumers don’t realize after a claim their home or auto policy can be surcharged. This surcharge typically lasts from 3-5 years in the State of Missouri but can vary by company.

What can you do if your Insurance Rates go up?

Shop your insurance! Just because your current insurance company is facing rate increases, doesn’t mean all companies are facing the same. Many insurers are constantly adjusting rates and you might be able to find cheaper rates elsewhere. It is usually good to look at coverage and price every 3-5 years.

Don’t like having to shop around? You can use an independent agent like Millennium Brokers. An independent agent, will have the ability to work with multiple companies and can help show your insurance if your rates go up! You can get a quote started today by visiting our quote page!

Request Your Proposal Here

Are you ready to save time, aggravation, and money? The team at Millennium Brokers is here and ready to make the process as painless as possible. We look forward to meeting you!

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