What’s Causing Insurance Rates to Go Up?

Insurance Rates
There is no doubt that consumers are paying more for insurance than ever before. There are a variety of different reasons for the increase but most people don’t realize that there are certain factors within their own lives that could be causing the rates to head north. Here are a couple of different examples of items that could affect life, health and even homeowners insurance premiums.

Credit Score

By now, many consumers have started to see changes in their rates based on their credit scores. The better the credit score, the less a person is going to pay for insurance, assuming that all other factors are equal. According to U.S. News and World Report, there is a lot of discussion about whether this is a fair practice. Some insurance agents aren’t convinced that this is the best way to figure out how much a person should pay for the various insurance options available.

Because some companies don’t use credit scores to determine premiums, consumers who shop around can often find a company that offers lower rates. While this is a time consuming endeavor, it can make a real difference when the time comes to pay the monthly or yearly premium.

Owning a Dog

Homeowners that own a dog can expect to pay a little more for their insurance because of the increase in the number of claims involving the furriest members of the family. The specific type of dog usually plays an important role in how much the premium is going up. For example, smaller dogs with less aggressive demeanors are going to have less of an effect on the rates than a larger breed dog with a reputation for attacks and aggressive behavior.

If a dog is involved in repeated incidents, there is no doubt that the cost of insurance is going to go up. While it may be tough to remove the dog from the family, for many, it may be the only way to keep insurance affordable and within their budget. To prevent this kind of thing from happening, it might be a good idea to do some research before bringing home man’s best friend from the pound or the pet shop. For more information about insurance and other financial topics, check out Money Tips.

Smoking

Most people know that smoking is going to increase a person’s health and life insurance rates. It makes sense. Statistically, there are health concerns that go hand in hand with people who tend to smoke. Even if a person has just picked up the habit, the increase in cost could be the same as someone that has been smoking for years. Despite the increase, there are ways to keep in control of the premiums.

One of the easiest ways to decrease the rates is for consumers to enroll in some type of smoking cessation program. It shows that he or she is attempting to stop smoking or at least decrease the habit. If a person does quit, there is no doubt that next year’s rates will decrease.

Image credits: http://www.flickr.com/photos/sercasey/299031183/

Source: http://money.usnews.com/money/personal-finance/articles/2013/11/11/5-factors-that-could-raise-your-insurance-rates