This is a question we continuously get asked at CH Insurance. Clients with a good loss history, timely payments, excellent credit, and very good policies and procedures. All across the landscape consumers are feeling the pinch of their insurance carriers in both Commercial and Personal Insurance.

There are many factors that are continuing to drive insurance rates up.  Let’s explore some of these by line of coverage.

AUTO INSURANCE

Auto insurance rates have been continuing to rise over the last 5 or so years.  Here are some of the reasons:

·       For every $1.00 the auto insurance takes in with premium, the carrier is paying

out $1.07 in claims nationally.

·       Distracted driving still contributes to a high number of claims.

·       New vehicles pricing has gone up.

·       The cost to repair a vehicle continues to increase for both labor and materials and is

outpacing inflation.

·       Since the pandemic, people have begun to travel more. Combine this with the

uncertainty caused by flying, there has been a surge in auto travel.

·       Medical costs associated with claims has increased.

·       The uncertainty of the legalization of marijuana in many states and how it will affect

claims.

Here are some useful tips that can help with rates:

·       Consider taking a defensive driving course. Most carriers offer a discount for it.

·       Keep your vehicles in good working order. This will minimize the risk of getting into an

accident.

·       Don’t drive while distracted. 

·       Have a conversation with your agent about any driving changes. (ie work from home so

not driving as much)

·       Have Auto fleet manuals for each driver to sign off on and understand the policies of

company vehicles.

HOMEOWNERS INSURANCE

Homeowners are not isolated from the impact of increased premiums. Here are some of the reasons why:

·       Home values have increased since the pandemic.

·       The cost for home repairs continues to increase for both labor and materials and is

outpacing inflation.

·       Natural disasters and catastrophic claims have an impact on homeowners insurance

rates.

·       Inflationary issues with the cost of all materials to include labore are up over 50% since

the pandemic, hence replacement costs values must be increased.

Here are some helpful tips that can help with rates:

·       Notify your agent of any changes/improvements to your home (i.e. new roof)

·       Consider a security system.  Most carriers provide discounts for a burglary/fire system.

·       Consider a water monitoring system. Most carriers provide discounts.

·       Consider a an appraisal for your home.

BUSINESS INSURANCE

Business owners are also experiencing rate increases.  If you are a business owner with vehicles and property, much of the same items that are impacting personal auto and homeowners’ rates are impacting your business as well.  In addition, business owners are also being impacted by their general liability, group benefits, employment practices premiums going up.

Some of the reasons for the increase in business related insurance premiums are:

·       Litigation concerns.  Lawsuits and verdicts continue to escalate.

·       Increased medical expenses.

·       Product liability concerns are increasing.

·       Social inflation.

·       Reinsurance cost with the Property markets that the carriers are experiencing.

·       Medical Providers want more money.

·       Cost of Rx drugs.

·       Increase in discrimination claims.

·       Increase in employment related lawsuits.

Here are some helpfully tips:

·       Have policies and procedures in place and be sure to follow them.

·       Provide employee training on your policy and procedures.

·       Have and periodically assess your employee handbook.

·       Report claims in a timely manner.

·       Have a wellness program for your employees.

·       Have a good documentation process for your various operations.

·       Discuss business processes and any changes with your agent.

As an independent agent, CH Insurance has access to numerous insurance companies to help you analyze this maze. We will work hard to find the right insurance solutions for you, your business, or family.  CH Insurance is in your corner… every day, every way!

Authored by

Tony D'Amato

SR. VP Risk Management and Operations

Tdamato@chinsurance.cc