If you received your home or auto insurance renewal and are wondering why your premium has increased yet you’ve had zero claims - you’re not alone! From gas, to groceries, to insurance, prices are going up as the U.S. reaches inflation levels never seen before.
While components of your insurance premium are very personalized for your unique situation many factors that influence your premium are simply outside your control. Part of this fluctuation has to do with inflation or in other terms, how the economy is doing overall. After 65 years in business, we’ve seen insurance rates increase and decrease over time.
While it's impossible for us to point to one single reason for inflation, a few reasons your insurance premiums are increasing at historic rates are outlined below:
- Rising labor costs
- Higher material costs due to supply chain shortages
- Workforce shortages
- Higher prices for used and new cars
- Higher prices for homes
- Increased repair costs
- More severe and frequent weather events resulting in more claims
- Insurance company rate increases due to substantial losses in 2022
All that to say, we currently find ourselves amidst what experts term a "hard market." This phase challenges insurance companies to reevaluate their strategies in the face of mounting financial pressures. To delve deeper into the intricacies of the hard insurance market and cost-sharing strategies, watch our informative video. Understanding these concepts empowers individuals and businesses to navigate the waves of change in the insurance industry.
Give us a call at 517-482-1316 and one of our amazing team members would be more than happy to assist you in reviewing your current insurance policies and planning for your upcoming renewal!
