Rising Insurance costs are a concern for both consumers and insurance companies. A combination of factors may go into the need for insurance companies to take a rate increase from one year to the next. Inflation, higher interest rates, increased costs, weather and climate events all affect the cost of insurance coverage.
Here are some of the factors that may be influencing your insurance rates:
Auto Insurance:
- Supply chain shortages have made it difficult to repair vehicles efficiently and at a low cost.
- Nearly 80% of collision repair shops are scheduling appointments 2 weeks or more into the future.
- Driven by rising prices, the amount insurers paid to cover claims increased by $30 billion in 2021.
Costs have increased: 19.5% for motor vehicle repairs and 9.9% for motor vehicle parts and equipment.
Home Insurance:
Prices for materials continue to rise:
- 12.5% for Floor Coverings
- 18% for Drywall
- 14.8% for Concrete Products
There are more frequent and severe weather and climate events, including wildfires and hurricanes. There has also been a surge in non weather-related water damage, such as plumbing leaks.
- Each year, there are approximately 8.24 billion in these types of property claims.
- 1 in 60 insured homes has a claim caused by water damage or freezing.
At Flury-Hinderks Insurance, we are helping our customers navigate a changing economy. The fundamentals of maximizing all your available discounts still apply while maintaining an appropriate level of insurance coverage.
Connect with us for an insurance portfolio review today.
