Why Insurance Rates Change

There are several factors that can affect your insurance rate over time.

woman viewing rate change
It’s important to understand that insurance premiums are very personal to each customer. They are determined by many factors, including adjustments to the deductibles, coverage limits, and discounts within your policy, along with price changes in your state. We use as much information as possible to make sure we provide you with the right coverage at the right price.
Why Do Rates Change?
We know that any increase to your premium is disappointing, but periodically adjusting our rates ensures we are able to cover you when you need us most. The factors that can cause our rates to change include both personal risk factors based on your unique profile and external factors based on the world around you.

+Personal Risk Factors-Personal Risk FactorsPersonal Risk Factors

Claims History
If you've filed a claim in the past few years, this might result in an increase to your premium. Remain on your guard and maintain good driving and home-protection habits. If you keep losses to a minimum, past claims on your record will decrease as time goes on.

Insurance Scores
Your personal insurance score is used to help determine your rates. We base this, among other considerations, on your credit report, payment history, and credit use. This practice lets us cover more drivers and homeowners and promotes equitable rates for all our customers.

+External Factors-External FactorsExternal Factors

A rise in total claims paid, based on factors like weather and changes to state insurance laws, can directly affect your premium. Some of these factors include:

  • Escalating extreme weather incidents, including: floods, hurricanes, snow, and ice storms have caused the frequency and severity of claims to rise across the country.
  • An increasing number of car accidents due to distracted driving.
  • Rising healthcare costs.
  • Rising cost of home and auto claims, including parts and labor.
  • Rising insurance fraud claims.
How Can I Lower My Insurance Rate?
Stretching your hard-earned dollars is our highest priority, that's why we also offer discount and savings options that can help lower the cost of your insurance.

+Multi-Policy Discount-Multi-Policy DiscountMulti-Policy Discount
Having more than one insurance policy with Liberty Mutual can save you time and money. Bundle your auto, home, renters, condo, or umbrella insurance together with our Multi-Policy Discount.

+Changing Your Payment Method-Changing Your Payment MethodChanging Your Payment Method
You can save an estimated $40 annually by paying your bill in full. You can also save up to $36 by switching to automatic payments through your checking or savings account.

+Coverage Limits & Deductibles-Coverage Limits & DeductiblesCoverage Limits & Deductibles
Adjusting your current coverage limits and deductibles could impact your rate. After logging in to your , you can easily view your coverage levels with Coverage Compass™ and make updates to your coverage and deductibles through Online Policy Change.
As always, licensed customer service agents are available to answer your questions or discuss other coverage options so you can live life with less worry. Please do not hesitate to call us at 1-888-398-8924, Monday through Friday 8 a.m.-10 p.m. EST, Saturday 8 a.m.-8 p.m. EST, and Sunday 11 a.m.-5 p.m. EST.
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