Insurance rates fluctuate over time even if you don’t make any changes to your individual policy. While there are things you can do to save on insurance costs – like working with your agent to customize your plan with the right coverages and discounts – it’s important to know the other factors that also impact insurance costs.

Rising Auto Market Costs

As the car market adjusts to higher costs, these can translate into rate increases across all insurance providers.  Some of the areas causing the rate increases are as follows:

  • Higher Repair and Replacement Costs
  • More Severe Accidents
  • Expensive Medical Care
  • Impact of the Pandemic

Homeowners Insurance Costs

The costs of building materials and labor have increased due to the lack of supply needed to meet the demands of the industry.  These economic changes are causing the homeowners insurance rates to increase to ensure the policy coverage meets the cost of replacement or damages needs that may occur. A few examples of these cost increase are as follows:

  • Drywall +13.6%
  • Carpet +4.5%
  • Carpenter +7.8%
  • Electrician +8.6%

The Impact of Environment and Weather

Insurance helps provide financial protection against the unexpected, like tornadoes, wildfires and hail. As the frequency and severity of environment and weather disasters increases, so does the impact on the cost of insurance. The following are 2022 weather statistics that demonstrate the frequency of the natural events:

  • 18 $1B Weather Disasters
  • 4,436 Hail Events
  • 5M Acres Burned
  • 1,331 Tornado Reports

Main Street America Insurance has created a detailed explanation of How Market Trends Impact Insurance Rates. After reviewing this informational document, give us a call at (401) 943-3388 to review your insurance policy.  We will take a look at your coverage, limits, and deductibles to ensure all is in place should an unexpected event should occur.