You’re not alone if you’ve noticed your insurance rates creeping up.
Many homeowners and drivers are seeing higher premiums, even if they haven’t filed a claim. But why is this happening?
The cost of paying claims drives insurance rates, and today, those costs are rising due to several key factors.
Let’s break down what’s driving these increases and, more importantly, what you can do to manage your rates.
Why Are Insurance Prices Increasing?
1. The Changing Legal Landscape
One major factor in rising insurance costs is legal system abuse, sometimes called social inflation. This refers to a trend where lawsuits result in larger settlements and higher legal fees, increasing the cost of claims. Insurance companies must account for these growing financial risks, ultimately impacting policyholders through higher premiums.
2. Increased Claims & Severe Weather
Extreme weather events are becoming more frequent and severe, leading to a significant increase in claims. In Ohio and beyond, hailstorms, floods, and tornadoes cause billions of dollars in damage yearly. As the number of claims rises, insurers must adjust rates to keep up with the increasing costs of repairs and replacements.
3. Rising Repair & Replacement Costs
Inflation has impacted almost every industry, and insurance is no exception. Whether car repairs, home construction, or medical bills, the cost of materials, labor, and services has skyrocketed. That means replacing a vehicle or rebuilding a home after an accident or disaster is more expensive than ever, resulting in higher insurance premiums.
4. Stricter Underwriting & Policy Changes
As insurers try to manage these rising risks, they adjust policies and coverage options. You may notice:
- Higher deductibles are becoming more common.
- Stricter eligibility requirements for specific policies.
- Longer claim processing times are due to complex legal and financial factors.
What You Can Do to Keep Your Rates Manageable
While some cost increases are out of your control, there are innovative strategies you can use to keep your insurance premiums as low as possible:
✔ Bundle Your Policies – Combining home and auto insurance (or other policies) can often lead to significant savings. Many insurers offer discounts when you consolidate coverage under one provider.
✔ Review Your Coverage Annually – Your needs change over time, and an annual review ensures you’re not over- or under-insured. A quick check-in with your agent can help you adjust coverage to match your current situation.
✔ Increase Your Deductible (If It Makes Sense) – A higher deductible can lower monthly premiums. Make sure it’s an amount you can comfortably afford in case of a claim.
✔ Take Advantage of Discounts – Many insurers offer savings for things like good driving records, home security systems, paying in full, or staying claims-free. Ask your agent about available discounts.
✔ Consider Umbrella Insurance – With rising legal costs, an umbrella policy can provide extra liability protection at an affordable rate, giving you peace of mind in case of unexpected lawsuits or claims.
Let’s Make Sure You Have the Right Coverage
At Crunelle Insurance, we help you navigate these changes and find the best solutions to keep your coverage affordable and effective. If you have questions about your policy or want to explore ways to lower your rates, call us today. We’ll work with you to ensure you get the best coverage at the best price possible.
Ready to review your policy? Contact us today!
📞call: (614)876-4634
📱 text: (614)924-8163
🖥️email: [email protected]
