Insurance Rates Increasing as a Result of Weather

Severe weather in Pennsylvania can significantly impact many facets of your life, including your insurance premiums. This association may be particularly relevant for home and auto insurance policyholders in Pennsylvania, as your residence and motor vehicles may constantly be at the mercy of various nature-related perils, such as heavy rain, hail, high winds and floods.

How Can Weather in Pennsylvania Impact Insurance Rates?

Suppose a severe weather event inflicts covered damage to your home or automobile, resulting in you having to file a claim against your insurance. In that case, you may receive financial assistance to limit your out-of-pocket losses and repair, rebuild or replace your property. However, while this is the general purpose of insurance, filing claims often incurs future costs, as insurance companies account for these events when reassessing your coverage upon renewal. This means that even though you have no control over the weather, you may often face higher premiums if you’ve recently filed a claim against your home or auto insurance.

In some cases, you may even see increased prices for insurance regardless of whether you have personally filed a claim against your policies. For example, if insurance companies see increased numbers of claims against home and auto insurance in your area, they may perceive risk levels in your area to be on the rise. Furthermore, as carriers face higher losses themselves due to paying out claims, they may raise rates for all policyholders to recoup their costs.

How to Limit Weather-related Rate Increases

Although you cannot control the weather, there are still steps you can take to potentially limit your home and auto insurance rates. Consider the following strategies:

• Fortify property. To limit the risk of filing a claim against your insurance, take steps to physically protect your insured property, including boarding up windows, sealing cracks in your home, parking your car in a garage and trimming overhanging tree branches.
• Bundle policies. It’s often advisable to bundle several types of insurance, such as home and auto, under the same company. This can help you achieve lower total costs while also reducing the chance of your insurer choosing not to renew your coverage.
• Shop around. Different insurance carriers may offer varying options, which could help you retain adequate coverage while reducing your rates. Consider working with an independent insurance agent, such as those at Pacelli Insurance, as these versatile professionals can help explore the offerings of many top-rated insurers.
• Think twice about claims. Although your insurance can provide crucial financial protection, there may be times when you should weigh whether or not it’s best to file a claim. For example, if your vehicle sustains only minor damage from a storm and you can afford to pay for the losses out of pocket, it might be beneficial to do so in order to avoid filing a claim and enduring subsequent rate increases.

We’re Here to Help

At the Pacelli Insurance, our knowledgeable and experienced team is well-equipped to help you understand your home and auto insurance rates and how severe weather may impact them. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.