Given the state of the insurance industry, I wanted to take a minute and share some insights about the current insurance marketplace and provide you with key statistics to address any of your concerns about rising premiums. 

Unfortunately, rising premiums are an industry-wide issue that many of you are going to have to address.

I want you to know, you’re not alone, my family is feeling it too. 

Here are the three factors that are causing insurance premiums to rise:

1. More Natural Disasters and Claims : In 2023, the U.S. experienced 28 natural disasters, each causing more than $1 billion in damage. Even events occurring hundreds of miles away, such as hurricanes or wildfires, can impact local carrier rates.
2. Higher Vehicle Repair Costs : Vehicle repair costs have surged by 20% due to advanced technology, increased labor costs, higher crash rates, and ongoing supply chain issues.
3. Higher Litigation Costs : Insurers paid an average of over $1.10 for every $1 in premiums collected in 2023. Aggressive billboard attorneys exacerbate this issue, especially as road conditions deteriorate and driving risks increase.

Despite these challenges, here are some practical solutions that you can take:

1. Consider higher deductibles . Higher deductibles may be a viable option to lower premiums. 
2. Avoid policy lapses . Insurance carriers have been less lenient in reinstating coverage after a policy has lapsed. Be sure to pay premiums on time or in advance to prevent policy lapses.
3. Value tenure . Switching insurance companies frequently can have long-term drawbacks. Maintaining a stable relationship with a carrier is very important.
4. Manage claims wisely . If you can, be sure to absorb small claims when possible and put some money aside for catastrophic losses. Lower claim frequency can have a positive impact on your renewal rates.

Here at Rising Star Insurance Group, we understand that this is a difficult time for all of us.  I just hope this article was able to help with any of your concerns. As always, feel free to call, click or come by if you have any questions or require further assistance.

Rising Star Insurance Group – Protecting what matters most to YOU, for over 30 Years.