Why are my rates going up?
Seeing your insurance bill go up can be a frustrating experience. If you’ve recently experienced a rate increase, you may wonder what factors contributed to it—and perhaps what you can do to prevent your rates from increasing again. If you’re in this boat, know you’re not alone.
Just about everyone has been affected by the current economic climate. With record inflation, low inventories, and lingering world conflicts, everything costs so much more than just a few short years ago. Gas, groceries, rent, mortgages—they’ve all gone up.
What does this mean for you as a Farm Bureau Insurance customer? In short, it likely means your rates will increase if they haven’t already. We make many decisions to avoid increasing rates because we know it puts an extra financial burden on our customers. However, as much as we’ve worked to keep our rates as low as they’ve been, you’ll likely see increasing rates going forward.
While a heavy percentage of recent rate increases can be attributed to inflation, a variety of other factors go into determining local rates for insurance. Below are some of the most common ones:
Changes in Driving Behavior
Speeding tickets and other moving violations may trigger a rate increase, as will accidents.
Adding a Young Driver or Additional Vehicles
If you’ve recently bought an additional vehicle or added a young driver, don’t be surprised if your rate increases.
Insurance Gaps
New customers with uninsured vehicles are more expensive to insure. Even a one-day lapse in your auto insurance can increase the rate.
Changes in Comprehensive Claims in Your Area
Comprehensive auto insurance covers a variety of factors outside your direct control—things like vandalism, arson, hail damage, animal collisions, windshield damage, and fallen trees. When a particular region has an increase in comprehensive claims over time, residents can expect higher insurance rates.
Moving
With post-pandemic job changes influencing people’s decisions about where to live, many Tennesseans have relocated in the past year. If you’ve recently moved to a more populated area, which generally has more claims, your rates will increase accordingly.
Our Customer-First Values Aren’t Going Anywhere
As a Farm Bureau Insurance customer, know that we work diligently to maintain competitive rates and provide top-notch products and services. Your trust during recent economic challenges means a lot to us and your loyalty sustains us and fuels our commitment to offering quality insurance to Tennesseans every day.
If you have questions about rate changes, contact your local agent—they're here to help.
