As your trusted insurance advisor, Bitner Henry Insurance wants to help you understand why home and auto insurance rates are rising in 2023.
Insurance rates are based on a number of factors, including the cost of repairing or replacing damaged property, the cost of medical care, and the frequency of claims. In recent years, all of these factors have increased, leading to higher premiums for consumers.
Here are some of the key drivers of rising home and auto insurance rates:
- Increased cost of building materials: The cost of building materials has increased significantly in recent years, due to a combination of factors including supply chain disruptions, inflation, and high demand. This has made it more expensive to repair or rebuild homes that are damaged by storms, fires, or other events.
- Labor shortage in the home construction industry: The home construction industry is facing a shortage of skilled workers. This has driven up the cost of labor, which is another major factor in the cost of repairing or rebuilding homes.
- Historically low housing inventory: The supply of homes for sale is currently very low, which has driven up home prices. This means that the cost of replacing a home that is destroyed in a fire or other disaster is also higher.
- Increased cost of car parts and repairs: The cost of car parts and repairs has also increased in recent years, due to supply chain disruptions and inflation. This has made it more expensive to repair or replace damaged vehicles.
- Shortage of car repair technicians: There is also a shortage of car repair technicians, which is driving up the cost of labor.
- Increased cost of medical care: The cost of medical care has been rising steadily for years. This is another factor in the cost of auto insurance claims, as insurance companies are responsible for paying for medical expenses incurred by their insureds in accidents.
How to save on home and auto insurance
While insurance rates are rising, there are still ways to save. Here are a few tips:
- Shop around and compare quotes from multiple insurers.
- Take advantage of discounts, such as safe driver discounts, bundling discounts, and multi-policy discounts.
- Raise your deductible. This will often lower your monthly premium, but it will mean that you will have to pay more out of pocket if you file a claim.
If you have any questions about your home or auto insurance coverage, please contact Bitner Henry Insurance today. We would be happy to review your coverage and help you explore ways to save.
Sources: National Association of Realtors, Federal Reserve Bank of St. Louis, Home Builders Institute, CoreLogic, Consumer Price Index, TechForce Foundation
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