A variety of issues are leading to inflation and we’re all paying the price.

If you’ve gotten any insurance renewals recently, odds are good your rates have gone up. There are a variety of reasons for that with inflation being top of the list. Building materials for homes are more expensive, there’s a chip shortage driving up the cost of cars, and there’s also a labor shortage. These factors mean the cost to repair your home and vehicle have increased in the event of an insurance claim.

Here are the primary challenges facing the insurance industry today that are contributing to increased costs:

1. Housing material and labor costs have increased Lumber and other construction materials have spiked in price due to less availability making the costs to repair and build homes more expensive. At the same time, there’s been an increase in the cost of skilled labor and the construction industry is down about 200,000 skilled trade workers. These factors have likely increased your property insurance costs.
2. The chip shortage A crucial component of cars built today, fewer available chips results in more expensive cars, and as the cost of cars rise, so does the cost to repair if an accident occurs.
3. Auto repair and labor costs have increased With the chip shortage, more people are keeping their old cars on the road longer, needing more repairs. The increased demand for car parts combined with supply chain issues, are leading to inflated car part costs. Auto repair shops are also experiencing staffing shortages and increased labor costs which are also driving up the costs of repairs.

So is there any way to lower your premiums? Here’s our advice:

How to save on your home insurance:

• Ask us about any home insurance discounts for which you might be eligible
• Get rewarded for being a safe homeowner by remaining claims-free for 5 or more years
• Explore payment options like automatic payments or paying for the year in full
• Increase your deductible
• Bundle with your auto insurance and save

How to save on your auto insurance:

• Ask us about any auto insurance discounts for which you might be eligible
• Maintain a good driving record or participate in a safe driving program like RightTrack.
• Explore payment options like automatic payments or paying for the year in full
• Increase your deductible
• Bundle with your home insurance and save

If you ever have any questions about your coverage, remember, we’re always just a call or text away!