What Can Cause My Insurance To Rise?

If you've recently opened your renewal notice and noticed your premium has gone up, you're not alone. Insurance rate increases can catch you off guard—especially if you haven’t made any claims or changed your coverage. At Baker & Carey Insurance Agency, we understand how frustrating that can be, and we’re here to help explain what’s going on.

As a local insurance agency serving Waco, Texas, we believe in keeping our clients informed, empowered, and protected. Let’s break down the most common reasons your insurance premiums—whether home, auto, or other—might increase, even when nothing seems to have changed on your end.

1. Claims History (Yours or Others')

Even if you haven’t filed a recent claim, your premium could still rise due to broader claims trends. If there's an increase in claims in your area—like storm damage, auto accidents, or thefts—insurance companies may raise rates across the board to offset higher payouts.Additionally, if you’ve filed a claim recently, especially one involving property damage, liability, or at-fault accidents, that can directly lead to a rate increase at renewal time.

2. Changes in Credit Score

In Texas and many other states, insurance companies use a version of your credit-based insurance score to help determine your rate. If your credit score drops significantly, your insurance rates may go up. On the other hand, maintaining good credit can help keep your rates lower over time.

3. Inflation and Rising Repair Costs

Inflation doesn’t just impact groceries and gas—it affects construction, labor, and vehicle repair costs too. If it costs more to rebuild your home, replace materials, or repair a vehicle after an accident, insurers adjust their rates to reflect that increased risk. Rising material and labor costs are among the top reasons we’re seeing higher premiums across Texas right now.

4. Changes in Driving Habits or Mileage

For auto insurance, changes in how much and where you drive can also affect your rates. If you’ve started commuting longer distances or using your vehicle for business (like rideshare driving), your insurer may see this as increased exposure to risk. Be sure to keep your agent updated on any lifestyle or usage changes to ensure you’re rated correctly.

5. Home Upgrades or Risk Factors

Did you renovate your home recently? Add a swimming pool? Get a trampoline? While these upgrades can increase property value and enjoyment, they can also increase risk from an insurance standpoint. For example, pools increase liability risk, while certain roofing materials or older plumbing may affect your home insurance rates.

6. Policy Lapses or Coverage Gaps

Keeping continuous coverage matters. If you let a policy lapse, even for a short time, it can impact your future rates. Insurance companies often view gaps in coverage as an increased risk and may raise your premiums or limit discounts when you reinstate or switch providers.

7. Statewide or Regional Rate Adjustments

Sometimes, rate changes are beyond your control entirely. Insurance companies regularly review their loss ratios and make statewide or regional adjustments. In areas like Waco, where we've seen an increase in extreme weather, property damage, or auto claims, these adjustments can affect even safe drivers and responsible homeowners.

Final Thoughts

We know it’s never fun to see your premiums rise, especially when you’re doing everything right. But understanding why insurance rates increase can help you make informed decisions and avoid surprises. At Baker & Carey Insurance Agency, we’re here to walk you through your coverage, shop for competitive quotes, and make sure you’re getting every available discount.Have questions about your policy or recent rate change? Give us a call—we’ll review your coverage together and help you feel confident about your protection.