Why Do I Think I Am Paying More Now for Less Coverage?

“I’ve been paying plenty for my insurance all along–
why do I keep having to pay more each year?”

Premium costs for all types of insurance have increased over the past several years. The increases are often significantly greater when compared with previous years. 

Why is this happening?

For auto insurance, labor and supply costs have increased dramatically. Cars are more expensive to purchase with substantial computer technology installed by the manufacturers and resulting global supply  chain issues. So when repairs are required, it costs more for insurance companies to cover the vehicle and to pay out claims. More cars are on the road than ever, leading to more accidents and more claims. All these factors lead to increased premiums.

For homeowner’s and business insurance, there have been many more weather-related concerns, including tropical storms, flooding, and high winds. Higher construction costs and demand for materials have pushed up the prices of new homes and the maintenance and repair of older homes. As with auto insurance, premiums have increased for everyone. Even if you haven’t submitted a claim yourself.

Covid and related illnesses have spiked health care costs resulting in higher premiums in health insurance, as well as for disability and long-term care coverage. More people have lost time from work. The outlook for long term care insurance will become more intense for many reasons. (That’s a whole topic on its own. See our Life, Disability, and Long-term Care insurance articles.)

Life insurance rates have increased as well. Fewer people are buying life insurance and the life expectancy tables insurers use to set premium rates are becoming less favorable.The result: people are faced with fewer choices and higher costs.

What can you do when faced with this situation? 

Be proactive. Don't wait until your premium increases or your current insurer decides to cancel their coverage. Call or email us to review all your insurance plans.

We will work through the tough questions of what losses you could incur, how much you can afford, and what you can do to minimize or prevent losses. We will go over what steps you should take to secure your financial future, protected by the right insurance coverage. 

There are many factors to consider. Our independent insurance agency is the right place to start the process. We work with multiple insurers so we can offer you the right coverage at an affordable cost.

Assessing your needs and getting the right coverage in place is step one. Our next article will focus on what you should expect in a potential claims process. What concerns may come up and how you can submit to your claim appropriately. And the questions you need to know to prepare for the realities, good or bad, in the insurance companies’ responses.