Why Has My Insurance Premium Increased When I Haven’t Made Any Claims?

If you've opened your latest insurance bill and wondered, "Why is my premium going up when I haven’t had any accidents, I’m a great driver, and my car is now older?" you’re not alone. At The Brooks Agency, we hear this question a lot, and we know how frustrating it can be.

Let’s break it down.

The Big Picture: Why Insurance Rates Are Rising

Over the last few years, the insurance industry has faced major turbulence; much like the rest of our economy. Here are some key reasons why premiums are climbing:

• Inflation & Supply Chain Issues: The pandemic caused a ripple effect that is still being felt today. The cost of car parts, repairs, and labor has skyrocketed. Used car prices alone have increased by about 33% since pre-pandemic times. If it costs more to fix or replace a car, insurance companies have to adjust their rates accordingly.

• Extreme Weather Events: Even if you live in New Hampshire, natural disasters across the country, like hurricanes in Florida or wildfires in California, can impact your premium. Insurance companies spread their risk across different regions, so losses in one area affect rates everywhere.

• Higher Claim Payouts: With rising medical costs, auto repair bills, and legal expenses, insurance companies are paying out more for claims than ever before. This leads to an increase in premiums for all policyholders.

  
  

What You Can Do to Lower Your Insurance Costs

While these industry-wide factors are out of our control, there are still ways to keep your premiums as low as possible:

✔ Regular Policy Reviews – We always recommend an annual review of your coverage. Life changes, and so do insurance needs!

✔ Available Discounts – Many drivers qualify for discounts they aren’t even aware of. Whether it’s bundling home and auto, safe driver programs, or low-mileage discounts, we’ll make sure you’re getting every possible saving.

✔ Adjusting Coverage – Depending on your vehicle’s age and value, adjusting your coverage could make sense. If your car is older, for example, you might consider dropping collision coverage.

At The Brooks Agency, we pride ourselves on educating our clients and helping them find the best solutions for their needs. If you have any questions about your current policy or want a complimentary insurance review, give us a call at 603-429-8800 or email ebrooks@allstate.com. Our office is located at 1 Wire Road in Merrimack, and we’re always here to help.

Let’s make sure you have the best coverage at the best price!