More than three years on since the start of the COVID-19 pandemic, the ripple effects are still spreading through every aspect of our society — and the insurance landscape is no different.
If you haven’t noticed yet, you likely will when it comes time to renew your policies … Home and auto insurance premiums are higher. At E.L. Sanders Insurance Agency, we understand that rising insurance premiums can be a concern for many, and we’re here to shed light on the reasons behind these increases and how we can help you navigate through them.
The rising premiums are a fact of life right now, and it’s one more reason why, as a consumer, you benefit from working with an independent agent like E.L. Sanders because we can review your account to see if one of our other companies may now be a better fit.
Why Auto Insurance Premiums Have Increased
In the wake of the global pandemic, the auto industry faced supply chain disruptions that continue to impact its recovery. The repercussions have led to a remarkable 20% increase in the median cost of new cars since 2020.
If that wasn’t eye-opening enough, the cost of used cars has surged by an astounding 37% during the same period. These escalating vehicle costs are directly affecting auto insurance premiums, as the value of insured assets rises.
Meanwhile, the scarcity of car parts has led to an 18% rise in the cost of repairing and maintaining vehicles. This increase directly impacts insurance claims, driving premiums higher for policyholders.
And it’s not just the cost of cars and parts that affect auto policies. In many cases, auto accident claims involve injuries so we also have to factor in the cost of health care, which has surged by nearly 7% since 2020.
The expenses associated with medical treatment following accidents have contributed to the uptick in claims, further impacting premium costs.
Factors Driving Homeowner’s Premium Increases
The housing market has experienced its own set of challenges, impacting home insurance premiums. With a decline of 34% in the number of unsold homes on the market since 2019, there’s been a noticeable shift in dynamics.
Simultaneously, the average cost of homes has skyrocketed by a staggering 42%, leading to the need for higher insurance coverage. As homes become more valuable, insurance coverage must keep pace, contributing to the overall rise in premiums.
Behind the scenes, a shortage of unskilled labor and the rising costs of building materials are reshaping the construction industry. This, in turn, has led to increased costs for repairing and rebuilding homes, which directly influences homeowner’s insurance premiums.
As these costs continue to rise, insurance providers adjust their rates to ensure adequate coverage in the event of unforeseen events.
Making the Best of the Situation
In times of uncertainty, having a trusted partner by your side can make all the difference. This is where E.L. Sanders Insurance Agency comes into play.
As an independent agent working with many insurance providers, we are uniquely positioned to help you navigate these challenging times.
Our expertise lies in understanding the intricacies of the insurance landscape and finding tailored solutions that fit your needs and budget. While rising premiums are unfortunate, our team is dedicated to finding the best policies that offer both coverage and value.
We believe that insurance should provide peace of mind without breaking the bank, and our commitment to personalized service sets us apart.
Our ability to work with numerous insurance providers means that we can help you find the policies that represent the best fit and the best value. We’re here to help you find the right coverage for you.
Then, should you ever have to file a claim, we become your advocate throughout the process. We ensure that every claim is handled properly and that you receive fair treatment every step of the way.
If you have questions along the way, we’re always here to help!