Everyone knows inflation hits us hard. Products and services cost more money – including your insurance premium. But why? Why have prices risen? Take a look at this list* from our friends at Erie Insurance.
Home Insurance Rates
Inﬂation: The Consumer Price Index (CPI) has risen more than 9 percent since July. That means we’re all spending more for the same goods and services.
Labor shortages: Labor market pressures have driven repair costs up even more with fewer available workers, extending timeframes for getting work done.
Building materials: Inﬂation is even higher when it comes to many of the materials commonly required for home construction and repair.
Extreme weather: Major destructive weather events such as hurricanes and wildﬁres are on the rise. This leads to trends where claims are both more frequent and more expensive.
Auto Insurance Rates
Repair Costs: Supply chain issues and labor market pressures have driven up repair costs by as much as 20% since 2020.
Vehicle Parts: Inﬂation has hit vehicle parts especially hard, with those prices up by 10% this year. (2 to 3% is more typical.)
Pricier Tech: Cameras and sensors help keep us safe, but cost more to replace if damaged, with some common vehicles now having 30+ pieces of tech not present on older models.
Vehicle Prices: Prices for used vehicles jumped more than 27% in 2021. New vehicle prices are up more than 14%.
Inﬂation: The Consumer Price Index has risen more than 9 percent, as of July. That means we’re all spending more for the same goods and services.
Labor shortages: A decline in available auto techs isn’t just a pandemic challenge, with 100,000+ facing retirement in the coming years.
Let us help you!
Contact us today to see how we might be able to help lower your premium.
*Source: Bureau of Labor Statistics and CCC Crash Course 2022 from CCC Intelligent Solutions