Why Are My Insurance Premiums Going Up?

​It can be unpleasant to open your insurance bill to pay your premium, only to discover that your premium payments have increased upon renewal.  We know that most people who carry insurance policies on their homes, cars, and businesses may be unfamiliar with how insurance policies are developed and changed.  So, we thought we might help you understand the why.
Insurers base their policy prices on several variables.  These cost components fluctuate up and down.  Premiums are currently rising in many states.  Remember, insurance companies are competing for your business, so they try to keep their rates competitive.
 
To help us through the process, we wanted to break it down between home and auto insurance.
 
Home Insurance

• The increased cost of construction materials and labor to repair or replace the damage to your home. Even though you did not have a claim, this impacts all insurance rates.
• Storms and other natural disasters. Hurricanes, floods, droughts, wildfires, and other severe weather events have become more frequent, destructive, and costly. In 2021 alone, the United States sustained 20 weather events with losses exceeding $1 billion.
• The older your home, the higher the insurance cost will be.
• Lawsuit frequency has increased, and settlements are at all-time high.
• Supply chain in the production and delivery of appliances, materials, tools, and other key construction elements added to delays and cost hikes.

Auto Insurance 

• Inflation hits the cost of buying and repairing vehicles.
• Lawsuit frequency has increased, and settlements are at all-time high.
• After COVID, accident rates increased, causing insurers to pay more for claims.
• Increased healthcare costs. Medical costs have increased for accident-related injuries.
• Crime has caused more auto thefts and break-ins, affecting all drivers' rates. There is a 20% increase nationally in stolen vehicles between 2020 and 2021.
• Your driving record may be accident-free, but if you have tickets or other violations, these will impact your premiums.

 
Proven Ways To Help Keep Insurance Costs Down

• Keep your home well maintained
• Be a safe driver
• Pay premiums annually
• Ask about discounts offered by insurers
• Bundle your home and auto together
• Increase your deductibles
• Have your agent review your insurance program and market your coverage the right insurer.

Strive Insurance Group, Inc. (formerly Gordon Lund Insurance Agency, Inc) is an independent insurance agency representing many insurance companies.  This means that we quote with many different insurance companies to obtain the best rate and coverage for your insurance.  We do this at no additional fee or service charge to you.  Our insurance agency's reputation for representing the best insurance companies, providing excellent customer service and competitive pricing to our clients has been earned and proven for over 30 years.  We take great pride in finding you the best coverage and backing it up with prompt personal service.  

We represent, and have established a strategic alliance, with only the highest quality insurance companies. In doing so, we can provide you with the service and coverage to meet your dynamic needs. As your needs change, we can review and collaborate to decide which insurance company or companies are best suited to your situation