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  • Writer's pictureJonathan Shaw

2023 Update to Home and Auto Insurance Rates

Bundling Home and Auto Insurance Together

The Influence of Inflation on Insurance Policy Premiums Persists in 2023

We all bear the brunt of inflation's impact, whether it's evident at the gas station, grocery store, or when renewing our insurance policies. Unfortunately, the insurance industry is also affected as insurance providers are compelled to adapt their risk assessment due to inflation and claims.

We understand the frustration of witnessing an increase in premiums, even if you haven't made any insurance claims. The primary reason for the continuous nationwide escalation of insurance premium rates is inflation.

Furthermore, policyholders face another challenge with the surge in insurance claims throughout the country. Not only are insurance carriers receiving more claims than ever, but settling these claims is also becoming more costly for them.

Whenever insurance carriers experience a rise in claims and the accompanying expenses to settle them, they raise premiums for all customers nationwide. In some cases, certain states with high severity levels have even seen specific insurance policies discontinued by carriers.

Insight into the Increase in Your Insurance Policy Premium Despite No Claims or Accidents.

Reasons behind the Rise in Your Insurance Policy Premium, Despite No Claims or Vehicle Infractions:

  1. Surge in Building Material Costs: The prices of construction materials for homes have skyrocketed, with some experiencing a staggering increase of 20% to 50%.

  2. Shortage of Skilled Workers: There is a scarcity of skilled labor, leading to companies paying higher wages to attract available workers.

  3. Escalation in Car Parts and Equipment Prices: The cost of car components and equipment has surged, with certain items experiencing an increase of over 22%.

  4. Higher Vehicle Maintenance and Repair Costs: The expenses associated with maintaining and repairing vehicles have risen, contributing to the overall increase in insurance premiums.

  5. Sharp Rise in Used and New Car Prices: Used car prices have surged by over 37% since 2020, while new car prices have increased by more than 20%.

  6. Increase in Medical Bills for Insurance Claims: The costs of medical treatment covered by insurance claims have gone up, impacting insurance premiums.

  7. Stricter Underwriting Standards: Many companies now require additional documentation, such as proof of ownership, photographs of the home's interior and exterior, and evidence of updates to roofs, plumbing, and HVAC systems. This scrutiny may cause delays or lead insurance carriers to avoid writing new policies until rate increases, ranging from 20% to 50%, are approved.

  8. Limited Coverage in High-Risk Areas and for Specific Vehicles: Some insurance carriers have stopped offering coverage in high-risk regions or for vehicles prone to theft or in wildfire areas. The remaining carriers that provide coverage in these areas must bear additional risk, resulting in higher insurance premiums.

If your insurance policy has undergone a significant increase, we encourage you to reach out to us. As an independent insurance agency, we have the ability to provide quotes from multiple insurance carriers we represent, helping you find a more affordable policy. This is one of the key advantages of working with us – we advocate for your best interests!

We have successfully assisted numerous customers in reducing their insurance premiums through various means. This includes coverage combos as well as applying all applicable discounts

Maximize your savings with these insurance premium reduction tips:

  1. Bundle and Save: Combine your home and auto insurance policies for potential discounts.

  2. Enhance Home Security: Install and maintain a burglar alarm system in your home to qualify for a protective device discount.

  3. Teenager Discounts: If you have a teenager on your policy, they may be eligible for discounts based on their academic performance as a good student or if they attend college more than 100 miles away as a distant student.

  4. New Home or Renovations: If you recently built a home or completed significant renovations, you may qualify for a discount on your insurance premiums.

  5. Accident-Free Benefits: Maintain a clean driving record without any accidents for at least three years to become eligible for a discount.

  6. Claims-Free Rewards: Some insurance carriers offer additional incentives for remaining claims-free. Earn a claims-free check by staying free of any claims for six months, and score another check if you remain claims-free for the entire policy year.

Additional Coverage Options Available

Amidst the increase in insurance premiums, many insurance carriers have introduced additional coverage options to their policies. The most prevalent upgrades include coverage for water backup, service lines, and personal property replacement in case of claims.

If you have any inquiries regarding your existing insurance policy, please don't hesitate to reach out to your agent. We are readily available to provide assistance and address any concerns you may have.

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