Why does your insurance premium increase?

Have you ever wondered why your insurance premiums go up every year?

Well, it's all because of inflation. As the cost of living keeps rising, so do the costs of things like property damage, medical care, and car repairs that insurance covers.

So, insurance companies have to increase their premiums to keep up with these higher costs. Plus, inflation can also make the prices of materials and labour go up, which can also affect the overall cost of insurance.

That's why you might notice your premiums going up annually. It's just the way inflation impacts the rising costs of covering claims.

While some companies try to limit rising costs each year, there will still be some increases.

That's why it's important to review your insurance annually with your broker. Inflation not only impacts your premium but also your benefits.