Insurance rates will fluctuate from time to time. Typically most polices are locked in for a year at time. That means your rates can’t change during that annual policy contract. But at the end of the policy, rates can change. Here’s why.

• Driving record. Each year your insurance company reviews your driving record. If you are a reckless driver your rates may go up.
• Previous claims. If you have submitted many claims within a 12-month period, then your rates may go up. So yes, that is what insurance is for. But sometimes people abuse insurance and submit many claims for things that may not be necessary. Remember, insurance is designed to protect you from large financial losses. If you are using insurance for minor repairs (to home or auto), then you’re probably going to see rate increase.
• No fault of your own. Sometimes insurance companies have a bad year. That means they paid a lot of claims and lost a bunch of money. Typically this happens due to large weather-related events like tornados, floods, etc. In this case, the cost increases are typically industry-wide and all companies are raising prices.

To learn more, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.