Let’s face it, everything costs more these days, and insurance is no exception. But consumers want to know if there are any logical reasons why, and the answer is a resounding yes.
Inflation has had an effect on just about everything, including insurance. From the cost of auto parts- – and the shortage of many components, including electronic chips- – to the cost of building supplies and labor costs, fueled by a shortage of workers, the cost of manufacturing and repairs has increased sharply over the last few years. Add to this the rising medical costs and more severe accidents, not to mention the cost to repair vehicles that have more features than ever before, and it becomes evident why all insurance companies have taken such a drastic hit over the last couple of years.
And when you consider that losses from natural disasters in 2022 totaled $130 billion, 76 percent above the 21st century average and 18 percent higher than 2020*, you begin to understand how the cost to consumers has also increased.
Now, more than ever in this hard market, it’s time to rely on your independent insurance agent to see if it makes sense to adjust your policy deductibles, review your coverages and check for additional discounts. Call us today to see how we can help.
*From the Insurance Information Institute
