WHY DO OUR PREMIUMS CONTINUE TO RISE?

This is a question we continuously get asked at CH Insurance. Clients with good loss history and timely payments to their insurance carriers can’t understand and are feeling betrayed by their long time carrier partners.

There are many factors that are continuing to drive insurance rates up.  Let’s explore these on a line item basis.

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

·       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

·       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

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

·       Don’t drive while distracted. 

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

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

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

·       Inflationary issues

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.

Business owners are also experiencing rate increases.  If you are 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.

·       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. We will work hard to find the right insurance company to provide the coverage you need at a reasonable price.  CH Insurance is in your corner