Why Are Insurance Rates Going Up?

According to our partners at Hanover Insurance, home and auto insurance rates can fluctuate, just like the cost of living fluctuates. There are a variety of other factors to keep in mind when it comes to your home and auto insurance costs, but making sure you have the right home and auto protection is essential for peace of mind.

Factors that go into auto insurance costs include:

• Driving trends, including more distracted drivers
• Increased repair costs due to new technology
• More cars on the roads
• More injuries and lawsuits

Factors that go into home insurance costs include:

• More storms with higher damage costs
• Bigger homes
• Increased labor costs
• Increased liability and lawsuits
• Claim history of previous owners and higher cost of claims

What about business insurance costs like workers comp, general liability, management and executive liability, and professional liability?

• Beyond the rising costs of both medicine and care, persistent labor shortages have resulted in inexperienced workers being hired for unfamiliar roles, leading to an increase in the severity of work-related injuries and claimsSimply put, the complexity of claims, and the cost to defend against them, continues to rise.
• A variety of factors – including eroding loss ratios, increased litigation, and difficulty for high-hazard risks to find coverage – are combining to send umbrella rates skyrocketing
• The increased rate of litigation – and costs – of discriminatory employment practices allegations, as well as cyberattacks, including data breaches, ransomware attacks and phishing
• Simply put, the complexity of claims, and the cost to defend against them, continues to rise.

If you really want to dive deep into this topic, view sources for this data, and see a more comprehensive look at what's driving up the cost of insurance, please visit the full and detailed article from Hanover below:

Hanover Article: Why Are Insurance Rates Going Up?

The Craft Agency is here for you to discuss your specific insurance policies. Whether it is making sure you have the proper coverage or trying to reduce your insurance costs, give us a call to discuss what’s on your mind.