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Learning Center
Key factors carriers use when pricing auto and home policies and what you can do about them.
Insurance carriers price risk individually. Two households with similar homes or vehicles can pay very different premiums based on factors that go well beyond basic coverage type. Understanding what drives your rate helps you set realistic expectations, make smarter coverage decisions, and identify opportunities to lower your premium at renewal.
Filing multiple claims in a short period signals higher risk to carriers and typically raises premiums at renewal sometimes significantly. Some carriers surcharge for as few as two claims within three years. This does not mean you should avoid filing legitimate claims, but small claims close to your deductible value often cost more in future surcharges than they pay out in settlements. If you are unsure whether to file, ask your agent to help you evaluate the likely premium impact before you decide.
Tickets and at-fault accidents raise auto insurance rates, and the effect can last three to five years depending on the carrier and the severity of the violation. A DUI can double premiums or result in non-renewal entirely. Safe driver telematics programs (like Safeco's RightTrack or Progressive's Snapshot) can help offset rate increases for drivers with otherwise clean recent records. If your driving record has improved over the past few years, re-shopping your auto policy at renewal often surfaces a better rate.
Most carriers in the states we serve use a credit-based insurance score a version of your credit profile weighted toward insurance-relevant factors. This is distinct from your standard credit score but correlates with claim behavior over large populations. Improving your credit over time tends to lower insurance pricing. Pennsylvania, Maryland, Virginia, and most other states we serve allow credit-based scoring. If your credit has improved significantly since you last shopped your policy, a re-quote often produces a meaningfully lower rate.
For home insurance, your ZIP code, proximity to a fire station, local crime rates, and regional weather exposure all factor into pricing. A home in a hail corridor in Texas or a flood-adjacent area in Maryland carries different risk than a similar home in a lower-risk zone. Roof age and condition is one of the biggest single pricing factors for homeowners many carriers surcharge for roofs over 15–20 years old, and some will decline coverage or limit the payout to actual cash value rather than replacement cost.
The most effective way to lower rates is to re-shop at renewal carrier pricing changes constantly, and the carrier that was cheapest three years ago may not be today. Maintain a clean driving record and improve your credit over time. Ask about available discounts: safe driver programs, multi-policy bundling, loyalty, new home, security systems, and paperless billing can all reduce premiums. We re-shop clients annually across 30+ carriers to make sure their rate is still competitive.