It’s true, your insurance rate may be increasing. We’re here to help you understand why and provide some recommendations to find opportunities to save you money.
Climate Events
Climate events can have an overwhelming impact on both homeowners and the insurance companies. Looking back to last year, it was an above average year with 21 named storms, 7 hurricanes, and 4 major hurricanes that were category 3 or higher. These storms can cause millions of dollars in damages — according to the National Centers for Environmental Information, in 2021, there were 20 weather/climate disaster events with losses exceeding $1 billion recorded in the United States.
When hurricanes, blizzards, nor'easters, and even manmade disasters such as the recent Columbia Gas explosion in the Merrimack Valley happen, insurance companies may have to update their policies and reconsider the risk of flood, fire, or storms hitting specific areas. With more risk, ultimately comes more costs, for both the carrier and homeowner.
Inflation
From gas prices to a gallon of milk, everything seems to be way more expensive than it was pre pandemic. In fact, U.S. inflation is now running at an annual pace of 8.6%, a 40 year high. As the costs for home repairs, autoparts, and mortgages increase, insurance needs to follow suit to ensure they can properly cover claims.
Increase in Accidents on the Road
Even with cars becoming safer with adaptive cruise control systems, backup cameras, and motion detectors, the National Highway Traffic Safety Administration estimated 42,915 people died in motor vehicle traffic crashes in 2021, a 10.5% increase from the 38,824 fatalities in 2020. This unfortunately means rates are also on the rise based on the data of more risk on the road.
Find out ways to save
We always remind our clients to not leave money on the table — we’re here to help you find the best ways to save while having the best coverage. Make an appointment with your local Cushman Insurance agent to review all of the available discounts that you may be eligible for. We also recommend looking into bundling your home and auto insurance, on average you can save up to 15% by doing so.
Sources:
A double whammy for consumers: Home and auto insurance rates are set to jump in tandem. USA Today. https://www.usatoday.com/story/money/2022/06/24/insurance-rates-consumers-home-au to/7724306001/
Up And Then Back Down, Recap of 2021 Hurricane Season. WHDH. https://whdh.com/weather-blog/up-and-then-back-down-recap-of-2021-hurricane-season/
U.S. traffic deaths reached a 16-year high in 2021, according to government estimates. USA Today. https://www.cnbc.com/2022/05/17/us-traffic-deaths-hit-16-year-high-in-2021-dot-says.html
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