Why Your Home & Auto Insurance Rates Change—and How to Save

When your home or auto insurance renewal arrives, one of the first things you notice is the price. If it’s gone up, you might be wondering: What happened? Insurance companies don’t pull numbers out of thin air—there’s a method (and a lot of data) behind those premiums.

At South Lake Agency, we believe in transparency.

Let’s break down the biggest factors carriers consider when setting your rates—and, more importantly, what you can do to help keep them in check.

1. Your Claims History

Carriers closely examine your personal claims record. Multiple claims, even small ones, can signal higher risk and lead to increased premiums.

What You Can Do:

• Consider your deductible carefully—small repairs may be worth paying out of pocket to preserve a clean claims history.

• Address small issues early (like fixing a minor roof leak) before they turn into major claims.

  
  

2. Driving Record & Household Drivers

For auto insurance, your record—and the driving records of anyone in your household—play a huge role. Accidents, speeding tickets, or DUI convictions can cause sharp increases.

What You Can Do:

• Drive defensively and obey traffic laws.

• Ask about safe driving programs or telematics devices that reward good habits with discounts.

  
  

3. Credit-Based Insurance Score

In many states, insurers use a credit-based score as part of rate calculations. This isn’t the same as your regular credit score, but it’s strongly influenced by how you manage debt and payments.

What You Can Do:

• Pay bills on time and keep credit utilization low.

• Periodically review your credit report for errors.

  
  

4. Replacement Cost of Your Home

Carriers base your homeowners premium on what it would cost to rebuild your home today—not what you paid for it. Rising construction and labor costs, plus inflation, push this number higher.

What You Can Do:

• Review your coverage annually with your agent to ensure it’s accurate.

• Bundle your home and auto policies for additional savings.

  
  

5. Vehicle Type & Usage

The make, model, age, and safety features of your vehicle influence your rate, as does how far and how often you drive.

What You Can Do:

• Choose vehicles with strong safety ratings and lower repair costs.

• Report any significant change in mileage, such as working from home more often.

  
  

6. Location, Location, Location

Where you live matters. Higher-crime neighborhoods, severe weather risks, or areas with more accident claims can increase premiums.

What You Can Do:

• Install home security systems or vehicle anti-theft devices.

• Ask your agent about discounts for protective devices.

  
  

7. Market-Wide Factors

Sometimes rate changes are out of your control—such as natural disaster losses across the country, supply chain shortages, or reinsurance costs. These affect all policyholders, even those with perfect records.

What You Can Do:

• Shop your policy regularly through an independent agency (like us!) that has access to multiple carriers.

• Take advantage of loyalty discounts when it makes financial sense.

  
  

The Bottom Line

Insurance rates are based on a complex mix of personal history, property details, and market conditions.

While you can’t control every factor, there’s a lot you can do to protect your rates—and it starts with having the right agent in your corner.

At South Lake Agency, we shop the market, review your policies annually, and help you find every possible discount so you get the right coverage at the right price.

📞 Ready to review your current policy? 

Call us today and let’s see how much we can help you save—without sacrificing coverage.

952-856-5500