If you’ve ever looked at your insurance renewal and wondered why the price has gone up, you’re not alone. Insurance can feel confusing and unpredictable. But understanding what drives those changes can help you stay in control and feel more confident about your cover.
At Furnley House, we believe financial planning should be simple, clear and stress-free. So let’s break it down.
Why Do Insurance Premiums Go Up?
Insurance premiums don’t always stay the same and for good reason. Providers regularly review risk levels, costs and market conditions to make sure cover stays fair and sustainable. But what does that mean for you?
Here are some of the most common reasons your premiums might rise:
1. Claim History
If you’ve made several claims in recent years, insurers may view you as a higher risk. The more frequently claims are made or the more severe they are the more likely it is your premium will go up.
It’s not about punishing you; it’s simply how insurers manage risk. Being claim-conscious when it makes sense to be so (for smaller incidents, for example) can help keep costs in check over time.
2. Changes to Your Policy
If you’ve added new benefits or increased your level of cover, you’re likely to see an increase in premiums. This isn’t always a bad thing, more cover means more peace of mind, but it’s worth reviewing your policy now and then to check it still suits your needs.
Not sure what you actually need? That’s where we come in.
3. Inflation and Rising Costs
Just like everything else, insurance is affected by inflation. As the cost of medical treatment, property repairs, or replacement goods rises, insurers adjust their rates to match. It’s about ensuring your payout, should you ever need it, is still enough to cover the real cost of recovery.
4. Your Age and Health
With life and health insurance, age and health status are key. The older you get or if there’s a change in your health premiums tend to increase, as the likelihood of a claim rises too.
It’s why early planning is important. Taking out cover when you're younger and in good health can often lead to better rates.
5. What’s Happening in the Wider Market
Sometimes, premium changes are out of your control. For example, if there’s a rise in natural disasters, or if insurers see higher-than-expected claims across the market, they may adjust prices to prepare for the future.
It might feel frustrating, but knowing why it happens can make it feel less personal.
So, What Can You Do?
Being aware of these factors is the first step. But you don’t have to tackle insurance planning alone.
At Furnley House, we help people like you stay in control of your finances without sacrificing time, or peace of mind. We’ll help you review your policies, understand the options available, and make confident choices for the future.
Book a chat with our team today. It’s quick, straightforward, and could make a big difference down the line.
Because financial security shouldn’t come at the cost of enjoying life today.
