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Rate Increases Not Slowing Down

Insurance Journal

I was looking through the Insurance Journal’s October edition and I quickly noticed a trend. 5 of the articles within the first 15 pages were related to insurance industry losses and increasing rates.

It started right out with a letter from the editor headlined “Unstable Homeowners”. AM Best revised its outlook on the Homeowner’s Insurance segment from stable to negative.

Other headlines include:

“Insurance Industry Should Expect $130 Billion in Catastrophe Losses Every Year: Verisk” – the average loss over the last 5 years was $101 billion, an increase from an average of $70 billion over the previous five years, 2013-2017.

“First-Half P/C Underwriting Loss Just $2B Shy of Loss for All of 2022”

“US Already Sets Record for Yearly Billion-Dollar Weather Disasters” – US set a record for number of weather disasters that cost $1 billion or more. And there’s still months to go on what’s looking more like a calendar of calamities.

“Policygenius Finds Average Home Insurance Prices Up 21%”

We knew there were going to be rate increases, but it doesn’t look like it’s slowing down anytime soon. So, what can we do?

On the Homeowner’s side:

  • Increase your deductible – if you have savings cushion, I always like saving money by accepting more risk myself. Plus, you don’t want to place small claims on your Homeowner’s policy, anyway, so you might as well take the savings.
  • Let us know if you’ve made any major improvements to your home, replaced your roof, furnace, hot water tank or made any electrical upgrades. Some companies will give you a discount based on the age of those items.
  • Review your discounts – do you have a central burglar and smoke alarm? Some companies will provide you with a discount for having one but require an annual certificate showing that it’s active. Have you sent in your alarm certificate?
  • Contact us – we’re happy to review your policy and offer any cost saving ideas or if necessary, quote you with our other companies.

On the Auto Insurance side:

  • Keep it clean – everyone knows that your driving record and claims activity directly affects your Insurance Premium.
  • Defensive Driving Course – if you haven’t taken one in the last 3 years, it’s an easy way to save around 10% on your Auto Premium…plus, it’s good for 3 years!
  • Notify us if there’s been a change in use or mileage for your vehicles. Have you retired and are driving less now?
  • Contact us – we’re happy to review your policy with you and if necessary, quote you with our other companies if it makes sense.

If you found these tips helpful and would like us to quote your Auto, Home or Business Insurance, give us a call 585-663-2004.