Inflation is probably impacting your insurance: Here's why
Inflation is affecting prices in lots of industries, including insurance. We’ll explain why and what you can expect.
Here's what we'll cover
What's happening?
Together we’re facing an unexpected and challenging time, and the impact we’re experiencing from inflation is no exception. From grocery bills to entertainment, you’ve probably noticed things cost a bit more than they used to. We’re here to help explain why it’s happening and what that means for you and your insurance specifically.
Increased costs have caused insurance companies industrywide to take action. As a result, insurance customers like you may see an increase in your premium (the amount you pay for your insurance policy).
How could my insurance premium be affected?
When determining your premium we look at a variety of factors including industry trends like number of claims and costs to repair vehicles and homes. If those costs increase, the price of your insurance premium will likely increase as well. And as you may know, we’re experiencing shortages of both labor and materials, which drive up costs.
Here's what's happening in the insurance industry
Rising costs impact the cost to repair and insure your car and home
These are some of the factors contributing to rising costs
Auto insurance
The chip shortage: A crucial component of cars built today, fewer available chips results in more expensive cars, and as the cost of cars rise, so does the cost to repair if an accident occurs.
More accidents and injuries on the road: Accidents, including fatal ones, are rising in number and severity, increasing the cost of claims.
Home insurance
A shortage in building materials: Lumber and other construction materials have spiked in price due to less availability.
Increase in the cost of skilled labor: Similar to the materials shortage, the construction industry is down about 200,000 skilled trade workers.1
Is my coverage the same?
Yes, absolutely! While it’s unfortunate prices are increasing, the good news is you’re still protected depending on the details of your policy and your level of coverage.
When could I see my premium change?
You may begin to see these changes at your renewal date.
How can I lower my premium?
Your agent can help you review your auto or home insurance coverages and check for any discount opportunities you may be eligible for.