Why Rates Are Increasing?

If you own a home, rent an apartment, or drive a vehicle, you have most likely experienced a sharp increase in premiums for coverage. 

The bad news is that it will only get tougher as well as more expensive to insure your homes and autos.

Why is this?  

Expensive computer chips and parts which are manufactured overseas and shipped to the USA are available and higher priced, our labor costs have increased significantly, and building materials produced here are tougher to come by. 

For example, a replacement windshield has more than doubled in cost.

Now, there is an added “culprit”: climate change. We have written about this before, but feel it is important to emphasize. Whether you believe in it or not, we are all paying for these additional costs due to floods, increased incidents of windstorms-tornadoes and hurricanes–that are happening with increasing frequency across the country. 

When the insurance companies pay out more and higher claims, they pass those expenses along to us, the consumers.

Very recently, the New York Times published an in-depth article on insurance companies' financial profitability which varies greatly in different regions in our country.  https://shorturl.at/IDPVv (gift article)

Of course, profitability is a major influence on insurance pricing. While it is true that risk is spread across sectors, and that insurers absorb some of that risk, they still indicate that rising costs directly affect rates, even if as an individual you are a good risk.

In some cases, insurance companies are electing to get out of certain markets altogether due to the uncertainty. Your insurance could be canceled because too many other people have experienced losses and filed claims in your area.

What can you do?

Don't take your insurance for granted. We encourage you to reach out to our agency to review your insurance needs. We will discuss your situation and make sensible recommendations that will help you better navigate the insurance landscape. We work with multiple insurers so you have as many options as possible in your state.