Food, gas and other common items continue to rise in price. Items that afftect your insurance premiums continue to cost more too...and that drives up the cost of insurance.
Labor rates for auto repairs, the cost of parts, medical expenses and increased payouts on liability lawsuits impact your auto insurance.
Your home replacement cost, whether a partial or total loss, is impacted by rising lumber costs, copper, plastics and virtually every component that goes into the cost of building a home.
Will premiums stop increasing? As long as catastrophic storms and other acts of mother nature are less frequent and severe, premiums may stabilize somewhat. However, if the mega loss trends continue, companies will continue to substantially increase their premiums. In addition, the cost of re-insurance the companies purchase is impacted by world-wide catastrophes and that impacts your premiums.
Finally, depending on each insurance company's individual statewide loss history, they will increase their premiums more or less than their competitiors any given year. So, in general, it is really a matter of how much each company is raising their rates, not whether or not they will raise them. That is where your independent agent can help you. He/she can continually "shop" and find the company that best fits your needs in coverage and price year after year.
Your Insurance Advantage Agent represents many major companies. Don't hestitate to call. Our main office phone number is 952-746-5770.
