Countless factors are taken into consideration when insurance providers come up with pricing for their policies. In particular, one factor is something that affects each one of us every day — in a variety of ways.
Inflation.
While inflation is a natural economic occurrence, it can lead to an increase in the cost of goods and services, which may cause an increase in insurance premiums. For example, as inflation increases, the cost of repairs and replacements in the auto industry also rises.
Insurance providers then must raise their premiums to ensure they can meet the rising costs of repairs and parts. Similarly, inflation can affect the cost of property in the insurance industry, which directly impacts the cost of property insurance premiums. If the cost of building materials and labor increases due to inflation, the cost of property insurance premiums also increases.
We understand this can be frustrating for our policyholders. That’s why, in times of significant inflation, it’s more important than ever to choose an independent insurance agent.
Not every insurance provider will raise their premiums at the same levels or the same frequency. When you work with an independent agent like E.L. Sanders Insurance Agency, we can help you shop around to find the most comprehensive and affordable policies from dozens of insurance providers.
It’s clear that inflation can and does impact the cost of insurance. So we’re here to give you options. We can help you keep rising costs at bay while still keeping your coverage at full strength.
Have questions? Or simply ready to re-evaluate your coverage — whether it’s business or personal insurance? Reach out today! We’re happy to help.