01/25/24
Why are insurance rates so high and what should I do?
Puzzled by Increasing Insurance Rates?
Insurance is a crucial aspect of our lives. It provides us with protection against potential risks and unforeseen circumstances. However, one common complaint among policyholders is the high insurance premiums they pay. What causes these high rates, and is there anything that can be done to reduce them?
While most of us are used to insurance rates inching higher every year, in 2024 we are likely to see higher-than-usual premium increases. It’s a good time to delve into these questions for a better understanding of the current personal lines insurance market and what to expect this year.
Why are my rates going up?
While not guaranteed, it is likely you will see your insurance rates go up more than normal this year, regardless of your carrier. There is a combination of factors that have created one of the toughest insurance markets we have seen in a while:
- Increased Cost of Construction Due to Inflation
- Wildfire Scoring Algorithms
- Natural Disaster losses around the country.
- Supply Chain Issues / Increase in Replacement Cost of auto parts
- Increase in Health Care Costs Related to Auto Accidents
Simply put, carriers have had to pay out more in claims than they have collected in premium, and they are trying to catch up.
What should I do?
You might think that now is the time to change carriers to seek a lower premium. However, this is not an ideal approach in a difficult insurance market. Insurance carriers are closely inspecting properties they insure, shortly after the new policy is placed. This means that moving to a new carrier with a lower premium might result in requirements from the carrier to replace your roof, paint your home, or trim back trees. While your property should certainly be well-maintained, carriers are being very selective and sensitive to each property’s condition.
What is Columbia River Insurance doing to help?
We are your advocate when it comes to placing your insurance. As an independent broker, the best part about working with us is that we are not beholden to one carrier for your insurance. We monitor renewal rates and remarket your insurance when we anticipate there is a better option for your policy. Due to the changing market, we have recently partnered up with additional carriers to ensure you are getting the best rates and coverages that are available.
Whether you are a current client with questions regarding your insurance this year or a potential client interested in working with an independent agency to put a policy in place, Columbia River Insurance has vast experience navigating challenging insurance markets and will make sure you're getting the most out of your policy without paying for something you don't need.