In today’s blog post, we want to address a topic that’s been on many of our minds lately: the current state of the personal insurance market in America. It’s safe to say that we’re facing some unprecedented challenges, and we feel it’s important to keep you informed.
The Landscape of Rising Rates: As representatives of some of the most reputable insurers in the world, including Chubb, Cincinnati, and others, we’ve observed a consistent trend of rate increases ranging from 8% to as high as 40%. These increases are hitting home and auto policies alike, and unfortunately, the outlook suggests that they will continue for the foreseeable future.
Tightening Underwriting Rules: In addition to rising rates, insurers are also tightening their underwriting rules. This means that certain conditions, such as the condition of your roof or your claims history, could impact your ability to secure coverage. For instance, having two or more covered losses within a three-year period or multiple moving violations could result in non-renewal of your policy.
Understanding the Reasons Behind the Hikes: The reasons behind these rate hikes are multi-faceted. Factors such as inflation, increased costs of construction materials and labor, rising expenses for vehicle parts and labor, more frequent natural catastrophes, a surge in accidents linked to distracted and impaired driving, higher court-awarded compensations, and an increase in uninsured drivers on the road all contribute to the current challenges in the insurance market.
Exploring Potential Solutions: While the current landscape may seem daunting, there are steps that can be taken to mitigate the impact. One potential solution is bundling your home, auto, and umbrella coverages, which can provide the highest allowable credits to your rates. While significant rate advantages may be scarce at the moment, our commitment remains steadfast in ensuring that you receive the best coverage for the most competitive rates available.
In conclusion, we understand that navigating through these challenges can be overwhelming, but please know that we are here to support you every step of the way.
Thank you for entrusting us with your insurance needs.
Joe Jenkins, President
