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Insurance

Why Are Insurance Rates Going Up?

By December 19, 2023March 25th, 2024No Comments
Insurance rates increasing

 

Why are insurance premiums increasing? Insurance protects you, your family and your business from unexpected events. But if you have seen a recent rise in your insurance rates, you may be asking yourself what’s causing this. The key lies in understanding risk. When risks increase, so do insurance premiums, recently several factors have contributed to this.

Inflation has hit everyone in all facets of our lives, and it affects insurance premiums too. As the cost of goods and services increases, insurers pay higher prices for building materials, for repairs, and labor costs.

Extreme weather events like hurricanes, floods, and wildfires have become more frequent in recent years. These events increase costs as insurance companies pay for the damages.

An overall increase in claims filed impacts insurance premiums as more claims mean more payouts for insurance companies driving premiums up. The alarming trend of distracted driving is a large driver of auto insurance increases.

The frequency and costs of lawsuits have increased dramatically in recent years. This trend is particularly noticeable in auto and professional liability insurance, and the more lawsuits the more insurance companies pay to cover legal fees.

Premiums are rising because it costs more to provide insurance these days. Before you consider changing your coverage, have a conversation with your independent insurance agent, they are here to help you navigate these changes. Your agent can view your current policy, discuss your risks, and help you explore various coverage options suitable for your budget. They have access to multiple insurance carriers and can compare prices and covers to help you choose and good coverage packets for you. If you don’t have an independent insurance agent, contact O’Connor Insurance Associates at 704-510-8884. We will review your coverage and give you advice so you can make the best decision for your family and business.

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