ROUGH. As we start off a new year, we’re seeing a lot of the same from the past years in the insurance market. Premiums and deductibles are increasing and underwriting guidelines are tighter and tighter.
We are living in a time where EVERYTHING costs more, insurance being no exception. Check out these stats from our friends at Nationwide:
- Motor vehicle repairs were nearly 20% higher in April 2023 compared with the same period in 2022.
- Supply chain shortages have made it difficult to repair vehicles efficiently and at a low cost. Driven by rising prices, the cost to insurers to cover auto claims rose by 23% in 2022.
- On the home side, there has also been a surge in nonweather-related water damage, such as plumbing leaks. 1 in 60 insured homes has a claim caused by water damage or freezing.
- Prices for materials continue to rise: 12.5% for floor coverings, 18% for drywall and 14.8% for concrete products.
Simply said, higher costs for insurance companies mean higher costs for us, the consumer. In 2024, we are committed to doing whatever we can to help you save money when it comes to insurance, as we’ve always done. This market makes it tough to move around from carrier to carrier as we’ve done in the past, but we have a variety of ways to help you save with your current carrier if we don’t have any other options:
- Sign up for paperless documents
- Updating your bill-pay method to pay in full or with recurring EFT (electronic funds transfer)
- Enrolling in telematics, which rewards safe driving or gives a rate based on miles driven
- Bundling home and auto with the same carrier
- Examining current deductibles
