What to Do When Your Insurance Rates Go Up: A Guide for Physicians

By Travis Christy, White Coat Insurance

If you’re feeling the pinch of high insurance rates, you’re not alone, especially when it comes to annual renewals. Over on the WCI Forum, one physician in Florida saw their umbrella insurance premium jump from the $600 range up to nearly $1,200 without any changes in their personal situation. And it’s not just them; others are reporting 30%-40% increases on everything from homeowners to auto policies.

So, what’s going on here? Insurers are raising premiums across the board for a whole mix of reasons, many tied to shifting market conditions and increased costs. I’ve seen how these sudden hikes can cause confusion and frustration. In this post, we’ll dig into why these rates are climbing, what it means for physicians specifically, and what steps you can take to keep your insurance affordable and effective.

Understanding Why Your Insurance Rates Are Going Up

Let’s start with the big-picture stuff: inflation. Even though, as of 2024 and into 2025, it’s supposedly stabilizing, it sure doesn’t feel like it in the insurance world. The reality is that rising costs in construction materials, auto parts, and even medical services are making insurers sweat. According to the Insurance Information Institute, rebuilding costs and severe weather trends are pushing homeowners premiums upward. On the auto side, Forbes points to supply chain disruptions and expensive vehicle parts as reasons behind those sticker-shock renewals. As the broader economy gets pricier, insurance companies adjust premiums to keep pace, and we end up footing the bill.

Then there are the personal factors. Even if you haven’t filed a homeowners insurance claim in ages, your rates might still go up. A lowered credit score, a past claim, or a big home upgrade—like adding a pool—can put you in a higher risk category. On the bright side, certain changes, like installing better security systems, can help offset these increases.

If you’re a physician, there’s an additional layer to this. High-income earners with substantial assets are more likely to be seen as targets for lawsuits, and that risk doesn’t go unnoticed by insurers. It’s common for doctors to need bigger umbrella insurance policies and more comprehensive coverage, which can translate into higher premiums. The White Coat Investor Forum is packed with stories from physicians who’ve maintained spotless records, only to see their rates rise anyway.

Unfortunately, this lines up with what we’re seeing industry-wide: when you need more robust protection, expect to pay a bit more.

More information here:

What Happens If You Can’t Get Homeowner’s Insurance in Your State?

Homeowners Insurance for High-Value Homes: How Much Coverage Do You Really Need?

Evaluating Your Current Homeowners, Car, and Renters Insurance Policies

When was the last time you gave your homeowners, car, or renters insurance a thorough checkup? If it’s been a while, now’s the perfect moment—especially if you’re aiming for financial independence (FI). Taking advantage of the partnerships The White Coat Investor has forged with homeowners and auto insurance carriers allows anyone to easily compare multiple offerings at once. These carriers understand that physicians have unique financial goals and responsibilities, and they’re ready to provide discounts and features that help you stay on the path to FI.

When evaluating options, pay close attention to coverage limits and deductibles. Don’t carry unnecessary coverage that inflates your costs, but also don’t be in a situation where a sudden claim could derail your financial plan because the out-of-pocket costs before insurance kicks in are too high. Making adjustments, like raising your deductible if it still feels manageable, can help lower your premiums. Finding that sweet spot is key; it keeps you protected without nudging you off track from your FI targets.

For homeowners, smart home improvements can help lower costs. Upgrading your roofing, adding a security system, or enhancing fire safety features shield your property and loved ones, but it can also make you a more attractive customer, potentially lowering your premiums even further.

The Role of Umbrella Insurance in Protecting Physicians

Umbrella insurance might not be the first thing on your radar, but it can really protect your financial progress—especially if you’re a physician on the path to FI. It serves as that extra layer of protection that kicks in when a big lawsuit or claim surpasses your regular homeowners, auto, or renters coverage. Even though premiums have been rising, it doesn’t mean you’re stuck paying top dollar. By shopping around, tweaking your deductibles, and tapping into physician-specific discounts, you can secure an umbrella policy that’s affordable and comprehensive. It’s all about striking the right balance so one unexpected incident doesn’t derail your financial goals.

For example, take a physician who’s in an automobile accident that seriously injures another driver. The resulting lawsuit might exceed the $300,000 liability limit on their auto policy. Let’s say the settlement comes in at $1.5 million. Without umbrella insurance, the physician would be responsible for covering the extra $1.2 million out of pocket, jeopardizing their savings and their path to FI. However, if they had an umbrella policy that adds an additional $2 million in liability coverage on top of their auto and homeowners policies, it would step in after the $300,000 is exhausted. The umbrella policy would pay the remaining $1.2 million, protecting the doctor's wealth and keeping them on track.

For a homeowner, suppose a guest slips on the entryway stairs; suffers a severe injury; and decides to sue for medical expenses, lost wages, and pain and suffering. If the total judgment goes beyond the $300,000 liability limit on the homeowner’s policy, possibly reaching $1 million, the homeowner, if they don't have an umbrella policy, would be left scrambling to cover the remaining $700,000. With a $2 million umbrella policy in place, it would pay that balance after the initial $300,000 is used up.

Renters can benefit from umbrella policies, too. Even without owning a home, a renter can still be held liable for injuries inside their rented space or for accidents they cause elsewhere. Let’s say a renter accidentally starts a kitchen fire that spreads to adjacent apartments, causing extensive damage and displacing neighbors. If the property damage and liability claims exceed the limits of their renters insurance, an umbrella policy would cover the additional costs.

More information here:

How Much Umbrella Insurance Coverage Do Doctors Need?

Deals, Discounts, and Adjustments on Insurance Plans

When it comes to managing your insurance, being proactive and intentional can save you money and stress. Start by having conversations with trusted experts—like WCI's vetted homeowners, auto, and renters insurance companies since they're the ones who understand the unique needs of physicians and offer coverage that accounts for your unique risks and financial goals. Exploring specialized insurance solutions is especially valuable.

Don’t forget to weigh the cost vs. coverage balance in your policies. Adjusting your deductibles is a straightforward way to lower premiums, but make sure the deductible is an amount you’re comfortable covering out of pocket. Review your policies regularly to identify any unnecessary or redundant coverage, and you might find you’re paying for features you no longer need.

The Bottom Line and Action Steps

Rising insurance rates don’t have to give you a headache. With a little effort (reviewing your coverage, adjusting your deductibles, and shopping around), you can put more money in your pocket.

What do you think? Have your insurance rates increased more than you expected recently? What have you done about it?

The White Coat Investor may receive compensation from White Coat Insurance Services, LLC; licensed in all states including MA and DC; CA license #6009217; NY license #1758759 (exp. 6/2025); Registered address: 10610 S. Jordan Gateway, #200 South Jordan, UT 84095. This does not affect the cost or coverage of insurance.

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