Why Have My Insurance Rates Increased?

Why Are My Insurance Rates Rising?

As you probably have noticed, your insurance premiums have more than likely increased over the past year. There are numerous reasons that have caused these rate hikes, making it more important than ever to review your insurance policies with your agent to make sure that you are appropriately covered and that you are ont overpaying for insurance that you no longer need. If you are located in San Diego, California, and have questions regarding your current insurance costs, Windfall Insurance Services inc. is here to help. Continue reading to learn more about why insurance premiums are going up.

Why Are Auto Insurance Premiums Rising?

The rising costs associated with inflation have caused auto insurance prices to grow; auto insurance rates have climbed higher because of the rising cost of goods and services. Ever since the pandemic, there has been a labor shortage in the automotive industry, as well as a disruption in the supply chain of parts and equipment. This has caused insurance companies to pay more for replacing or repairing damaged vehicles, subsequently causing auto insurance rates to increase. Another factor contributing to the higher cost of auto insurance is an upsurge in automobile accidents, leading to more auto insurance claims being filed.

Possible Reasons For Increased Home Insurance Rates

There are several reasons that homeowners insurance prices have risen in California recently. Similar to auto insurance, inflation has caused increases in the cost of labor and building materials, making it more expensive than ever to repair or rebuild a home that has sustained damages. The state of California has also seen a surge of natural disasters and damaging weather, such as wildfires, flooding, and even hail damage, which has resulted in more homeowners filing homeowners insurance claims. Another contributing factor to more expensive insurance rates is that insurance companies have been changing the way that they calculate the risk of insuring a property, and now evaluate factors such as the location and condition of the home. Because of the increase of natural disasters, most insurance companies have had to make certain adjustments to their risk calculations to account for the higher likelihood of damage.

Get Help Keeping Your Insurance Premiums Affordable

There are some factors that are out of your control when it comes to insurance pricing, even if you have never filed a claim before. Fortunately, there are certain steps that you can take to help reduce your rates, such as: increasing your deductible, reviewing and making adjustments to your current policies, checking to see if you qualify for discounts, bundling your policies, and eliminating policies that are no longer needed.

If you are located near the area of San Diego, California, and interested in learning about ways to help save money on your insurance policies, contact Windfall Insurance Services Inc. today for a consultation.