Author:
We get phone call after phone call about premium increases, and everyone wants to know why them? We’re here to tell you, as your friendly insurance agents, that it’s not just you, it’s everyone, including us.
Doug has been insured with Grange for three years. He was offered a 38.07 percent increase on the home policy and a 24.02 percent increase on the auto. Doug knows every trick in the book and he still couldn’t find a better deal. He is staying with Grange, even with the increases, because they are still his best pricing.
Liz has been with Safeco since Doug started writing for them in 2017, because year-over-year, they’ve had the best pricing for her and good claims experience (a new roof in 2021 and fixed a flooded bathroom in 2018). This year, Safeco offered her a 49.92 percent increase on the home policy and a 21.5 percent increase on the auto. She shopped around and is moving her coverage to Grange for the renewal term.
The insurance industry is a mess right now. Natural disasters like hurricanes and wildfires have hurt the reinsurance markets (all companies sell off some of their risk and purchase reinsurance). The price of reinsurance has gone up, which gets passed onto the consumer (us).
Here in Ohio, there are normally five major events a year. Last year we had 13, which caused numerous roof claims. And just look at 2024, it seems like there is a tornado warning once a week and resulting storm damage to home and cars.
And everyone’s favorite topic, inflation, has driven up the cost of repairs, which again turns into higher premiums. We just read a story the other day that said in January 2024, motor vehicle insurance costs have increased by 20.6%, making this industry one of the highest inflationary industries.
In short, your premium increases are nothing you did, the industry is losing money and the result is a higher bill for you. We see your renewals as they come in and if we have a better option to help you save money, we’ll present it. But like in Doug’s situation, sometimes the increases are still your best deal.
We’re always happy to text, email or get on a phone call to talk about your specific situation.