Preparing for your next insurance renewal is not something we really plan for. Perhaps you get the bill and don’t open it for a week only to painfully tear that envelope or open that email to unveil the new premium days later.
Along with most other businesses, our world has also impacted the insurance industry, thus affecting us, the consumer. Last year was an unprecedented one. The skyrocketing cost of building materials, labor & product shortages, rising costs of used vehicles and the cost to fix newer vehicles due to recalibrating all the bells and whistles were major disruptors. Social Inflation has also increased the size of lawsuit judgements.
As we see the cost to build a home, or rebuild a home, increase dramatically, the replacement cost on our homeowner’s policy jumps in value, impacting premium. It may take longer to fix our vehicle after an accident, parts may be scarce and the cost to replace a totaled vehicle affect our pocketbook and auto premium. Sizable litigation costs and settlements impact liability, whether it be from cyber-attacks, wrongful termination suits, or the classic slip and fall. Every angle we are seeing impacts our life and potentially our lifestyle.
What can you do about all the changes? Well, specifically relating to your insurance, call to set up a total account review with your agent. Let your agent share insight on your account and perhaps make any necessary changes or recommendations. Second, understand that prices are being driven in a direction that is not favorable to the consumer. Lastly, prepare for increases on your premiums. So, when you open that renewal bill or email, you won’t have the shock and awe but merely a shrug and eye roll as you had expected this to happen.