We’re all feeling the pressure of increasing rates…why is this happening?
The many factors driving auto insurance rates:
15 separate $1B+ loss events from weather as of Oct 11, 2021.
Used car and truck prices up 7.2%; new vehicle prices up 9.4% Sept ‘21 - Sept ‘22.
Supply chain issues have triggered shortages of chips — and new cars.
There are labor shortages, and wage increases are up 8.5%, Q1 ‘22 over Q1 ‘21.
Vehicles: bodywork costs up 12%, repairs up 15%, Nov ‘21 compared to Nov ‘22.
High severity in auto accidents; number of fatal car crashes is up 15%, 2022 compared to 2020.
Why rate pressures are building in the home insurance market:
Material goods for new residential construction prices up 14.3% Oct ‘21–Oct ‘22.
15 separate $1B+ loss events from weather as of Oct 11, 2022.
Asphalt roofing materials prices up 14.5% Oct ‘21–Oct ‘22.
Prices for lumber and wood products up 6.2% Oct ‘21–Oct ‘22.
423,000 job openings in the construction industry as of Sept ‘22.
Information provided by The Travelers Indemnity Company, download the full packet of information for further details and sources cited.
Have questions this doesn’t answer?
We are committed to meeting your insurance needs to the best of our ability, especially when the market is challenging. Reach out today if you have any questions or concerns about new or current policies. We’d be happy to help!