What is Causing Insurance Rates to Increase?
Several factors are causing rates to increase for auto and home insurance. For starters the overall cost of doing business has increased. This is largely due to supply chain issues & labor shortages. Inflation is also a large cause for the rise in premiums. Another cause at fault is the change in driving patterns. The National Highway Traffic Safety Administration reported, “there is an 18.4% increase in fatal crashes during the first six months of 2021 compared to the first six months of 2020 — the highest percentage increase on record.”
Will Auto and Home Insurance Prices Go Back Down?
It is possible that rates could go down. If inflation and business expenses level off, there is the chance that rates will decrease or also level off for the next few years.
What Can You Do to Avoid Rising Insurance Rates?
Shop for a new carrier. It often saves you money to switch carriers every so often. Pettegrew Insurance is great with this because our agency is a brokerage with multiple companies. Another option is to take advantage of discounts. Most companies offer savings for both auto and home insurance. Some of the discounts available are bundling, a safe driver app, or taking a defensive driving course.
As auto and home insurance rates increase in 2022 knowing your options is key. For any questions or to explore more of your options, Pettegrew Insurance is here for you.