What do Home Insurance Rates + Inflation In 2024 and Prokop Insurance have in common? If you’re like many homeowners, you have probably noticed that your insurance premiums keep going up. It’s not just you – insurance rates are rising across the board. In fact, according to a recent report by the National Association of Insurance Commissioners, homeowner renewal premiums skyrocketed 21%, while auto policy renewal premiums jumped 17%.
But why are insurance rates increasing so much? There are a few factors why inflation is causing rising insurance rates.
- Increasing frequency and severity of natural disasters, such as hurricanes, wildfires, and floods. These disasters can cause significant damage to homes and vehicles, leading to a higher number of claims. Due to inflation, materials, labor, and other construction costs have increased and, in turn, higher premiums for consumers.
- Rising insurance rates is the increasing cost of medical care. As medical expenses rise, so do the costs associated with personal injury claims. This means that insurance companies are paying out more for medical expenses, which leads to higher premiums for consumers.
- Increase in operating expenses – Inflation affects not only claims costs but also operating expenses for insurance companies. As the cost of goods and services increases, so do the costs of running a business, including employee wages, rent, and technology expenses. Insurers may pass these increased costs on to policyholders through higher premiums.
- Reduced purchasing power – Inflation reduces the purchasing power of consumers’ dollars, which means they can buy fewer goods and services with the same amount of money. Insurance policies have limits, and with inflation, the value of those limits decreases. As a result, insurance companies may increase premiums to compensate for the reduced purchasing power of policyholders.
- The COVID-19 pandemic has had a significant impact on the insurance industry. With more people working from home and driving less, there has been a decrease in commercial insurance policies, leading to a shift in risk and higher premiums for personal lines of insurance.
What action you need to take!
So, what can you do to protect yourself from rising insurance rates? One option is to shop around for the best rates. Different insurance companies have different pricing structures, so it’s important to compare quotes from multiple insurers to find the best rate for your needs.
At Prokop Insurance Agency, we understand the frustration that comes with rising insurance rates. That’s why we work with a variety of top-rated insurance companies to find our clients the best coverage at the best price. Our experienced agents will work with you to assess your unique needs and find a policy that fits your budget.
In addition to homeowners insurance, we can also provide you with quotes for other types of insurance policies that may be rising in cost due to inflation, such as auto, motorcycle, boat, snowmobile, cabin, and more. By bundling multiple policies together, you may be able to take advantage of multi-policy discounts and save even more money on your premiums. Let us help you find the best coverage at the best price for all of your insurance needs.
Don’t let rising insurance rates get you down. Get a quote from Prokop Insurance Agency today and see how much you can save.
Sources:
- National Association of Insurance Commissioners.
2024 Insurance Industry Outlook. - Insurance Information Institute.
Insurance Industry Financial Results, 2024. - Insurance Journal.
Insurance Rates Continue to Rise in 2024. - CNBC
Insurance Costs Hit Corporate Earnings