Why are Insurance Rates going up so much?
The cost of doing business is increasing for all companies , including insurance companies.
Consumer Price Index (CPI) rose 8.3%. (much higher for the things we buy most)
The price for new cars and trucks rose 20%.
Used car and truck market saw a 60% increase.
Vehicles are much more complex than they used to be, which adds to the overall cost of ownership. Even small accidents can cause thousands of dollars worth of damage to delicate electronics that require specialized repairs.
Parts are up 25%
Labor is up 19%
Supply chain disruptions and many more factors.
Because car insurance is designed to pay for the costs after an accident — including both property damage and medical costs — anything that raises these costs is likely to raise rates.
Insurers need to make sure they have enough funds to pay claims, so when inflation hits, car insurance rates are affected.
We can’t keep charging the same amount unless we want to go out of business. It stinks, but it’s all insurance companies.