Your personal characteristics and decisions influence how your insurance rates are determined. While you can’t control every risk factor, knowing what information insurers consider when setting premiums is a good step toward making choices that may positively influence your rates.
Home Insurance
Insurers look at property details and personal behavior when pricing home insurance policies.
- History of property damage claims— Frequent claims for things like water leaks, theft or storm damage can signal recurring risk. Even small claims may contribute to higher rates.
- Owning certain dog breeds—If you own a breed considered aggressive or more likely to bite, you may see a surcharge or face exclusions in your liability coverage.
- High-risk features on the property— Insurers may consider swimming pools, fountains, trampolines, treehouses, playground equipment and other recreational features to be “attractive nuisances.” Even with safety precautions, these add risk.
Renters Insurance
Renters insurance pricing is generally lower than other lines, but personal risk factors can still affect it.
- Frequent claims for theft or damage— Multiple small claims for lost or damaged belongings may suggest a pattern of risk to insurers.
- Poor credit history—In some states, credit-based insurance scores are allowed and can influence premiums. A lower score might result in higher rates.
Auto Insurance
Insurers use underwriting to gauge how likely you are to file a claim, and the results can directly impact your premiums. Even if you consider yourself a safe driver, certain personal behaviors and past incidents may make you appear riskier to insure.
- Past claims follow you. If you’ve filed multiple auto claims in the past—even if you weren’t at fault—your risk profile increases. Frequent claims suggest a higher chance of future ones.
- Major car accidents matter. Involvement in serious at-fault collisions is a strong indicator of future liability. Even a single major accident can affect rates for several years.
- Multiple traffic violations add up. Speeding tickets, DUIs and other citations raise red flags for insurers. These infractions show patterns of risky behavior behind the wheel.
- Younger drivers may pay more. Insurers consider your age when calculating the risk that you may file a claim. Rates typically decrease with age and experience for drivers with records free from accidents and traffic violations.
Health & Life Insurance
Medical history and personal habits affect health and life insurance premiums. What you do every day matters in the eyes of underwriters.
- Smoking and tobacco use—Tobacco users pay more for life and health insurance. The long-term health risks tied to smoking are well documented and reflected in pricing.
- High-risk hobbies—Skydiving, scuba diving, rock climbing and other extreme activities may result in higher premiums or limited coverage options. Even occasional participation can raise concerns.
- Chronic medical conditions—Pre-existing conditions, especially if unmanaged, may place you in a higher risk category. This can affect eligibility and cost.
What Can I Do?
Contact Deeley’s Personal Insurance experts to discuss strategies for lowering your risk level. Email us at BeSure@deeleyinsurance.com today.
