Add home and auto insurance to the list of things that are getting more and more expensive. In fact, prices are starting to get uncomfortably high and it’s leading people to question if they really need it.
Here’s Five Fast Facts About Rising Insurance Premiums:
- 🏚️ Housin’ - The average premium rate for homeowner’s insurance increased by 11.3% last year. A total of 25 states saw a rate change of at least 10% in 2023. On the high and low ends, Texas saw a 23.3% increase, while Hawaii only went up by 1.8%.
- 🚗 Wreckage - Auto insurance is also on the climb. The 10 largest companies raised their premiums by double digits. Farmers Insurance is the most extreme example, raising their rates by a weighted average of 30.4%.
- 🤷 But Why? - Insurance companies are blaming the pandemic. They claim that for every dollar they collected last year, they paid out an average of $1.10 in claims and expenses.
- 🎈Inflated - They’re also blaming inflation, saying that the cost of fixing or replacing things has jumped because of increased labor and material prices. Something’s hinky with that excuse: price increases have grown past overall inflation.
- 🎲 Take a Chance - Some homeowners are saying “screw it” and just risking things by canceling their policies. A study by the Insurance Information Institute found that 12% of homeowners had no insurance, which is up from 5% in 2020.
🔥Bottom line: This data is crazy, especially considering insurance companies seem to do anything they can to keep from paying out what they should when you need it. Will this trend stop? There’s no telling.
Have your insurance premiums increased?
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