Budget for Insurance
The last time the insurance industry saw a hard market (a market where insurance renewals are increasing and new business policies are more expensive and harder to find) was back from 2001-2004. Before then, it was 1975-1978 and 1984-1987. With inflation on the rise, unfortunately so are insurance premiums. Budgeting for your insurance renewal will be very important these next few years. This hard market is due to multiple factors:
- Price of building material is increasing, so insurance carriers are having to increase your property value to help keep up.
- Prices of auto parts are increasing or parts are unable to be found so the insurance carriers are having to total out vehicles as opposed to having them fixed.
- New and used car values are higher.
- Labor shortages.
- The weather losses from 2021 and now Hurricane Ian will impact 2023 pricing as carriers have incurred significant claim costs already from those events.
(More than $150 million from FEMA has already gone to Hurricane Ian relief efforts and there is an estimated 67 billion of insured losses from Ian).
So what does this mean for your budget? We are seeing about a 15% to 20% increase on insurance premiums.
Help us make sure you are taking advantage of all the discounts available to you:
- If you have replaced your roof in the past few years, please make sure our agency is aware so we can notify your carrier.
- If you have taken a safe driving course, send us the certificate so we can get that discount added.
- If you want to look at doing a telematic device or app, give us a call or send an email so we can get you signed up.
Lastly, make sure you are paying your premiums on time. Insurance carriers take payment history into account when renewals are priced. EFT and auto pay options are available with our carriers.
Below are some infographics courtesy of Travelers Insurance to help break down the reason for the increased insurance costs.
