Recently, consumers have been seeing a great increase in all of their daily living expenses. The price of food, gas, electricity and water have steadily increased since the Covid-19 pandemic.
When the world shut down, we may have seen a plateau in insurance rates or even a decrease as drivers were off of the roads. There was supply chain disruption during that time and it was plaguing every industry. The automobile and home industries had parts, tools and supplies stuck overseas for months on end. Chips for vehicles, windshields, you name it. With this happening, insurance companies began to total out vehicles out of necessity to indemnify clients.
When drivers got back on the roads, distracted driving and accidents went up to an unprecedented rate. Frequency of accidents skyrocketed more than insurance carriers could’ve ever anticipated.
Insurance carriers have had to take rate increases to combat the losses.
These increases are not to penalize you but to properly indemnify you in the case of a loss. Insurance companies that have been around for years are pulling out of the nation and ceasing new business. In order to avoid going under completely, all insurance companies in the nation have been taking rate increases.
As advisors in the industry, it is our commitment to always look out for your household’s best interest. We recommend staying with one company, if possible, for 2-3 years before switching as the loyalty increases your insurance score. We have made a commitment to advocate for your best interest and do our market research for you. If you would like us to research the market for you again, please let us know.
