Why Are My Insurance Costs On The Rise?

22 Mar Why Are My Insurance Costs On The Rise?

Insurance costs are indeed on the rise, and there are a few reasons why this is happening. Allow us to give some insights on why this is occurring.

Why the sudden rise in rates?

First, there have been more natural disasters in recent years, like hurricanes, wildfires, and floods. This has led to more insurance claims being filed, and the cost of those claims can add up quickly. Insurance companies need to have enough money on hand to pay out claims, which means they have to raise rates to keep up with the influx of disasters happening around us.

Health Insurance Costs Rising

For those with Health Insurance, medical costs have also been rising rapidly. As a result, health insurance premiums have gone up as well. This is because insurance companies have to cover the cost of medical treatments, and those treatments are becoming more expensive by the day. With little regulation of prescription drug prices in the mix, some companies are able to charge outrageous amounts for their medications, which in turn can drive up the individual costs of other insureds in the marketplace.

Insurance companies have been facing increased costs themselves. Everything from salaries and technology, to rent and materials have been getting more expensive, which means they have to charge more in order to make a profit. Things like inflation also are not helping the current situation.

Home and Auto Insurance Costs on the Rise

The average cost to rebuild a home or repair a car has gone up significantly, just from the price of parts and good to complete a project. Add on top of that a shortage of skilled laborers and the longer times it is taking to complete projects, and you can see how quickly things can add up.

For example, a simple car repair a few years ago may have taken a day or two and a rental car for a few days. With the current economy, some people are seeing repairs take weeks, which means things like the rental cars are being needed for longer periods of time and costing more for the companies to keep their insureds mobile.

Fraudulent Insurance Claims and Legal Woes

Insurance companies are also dealing with more fraud and legal issues than ever before. Unfortunately, there are some people out there who try to take advantage of the insurance system, and that can drive up costs for everyone. Fraudulent claims or injuries end up hurting everyone in the long run.

Insurance costs are going up for a variety of reasons, but it’s ultimately due to increased expenses and more claims being filed. However, it’s important to remember that insurance is still an important investment that can protect you financially in the event of an unexpected event.  That’s why we’re here to help you find the best rates and the best coverages, even when costs seem to be on the rise. Insurance is definitely the one place you don’t want to cut corners in order to keep your family and the things you work so hard for protected.