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Inflationary Changes Have an Impact on Insurance Rates

Inflationary Changes Have an Impact on Insurance Rates

Just as with other businesses in the community, inflation has had an impact on insurance rates. The staff at Smith & Eddy Insurance note that increased home-repair costs, as well as country-wide catastrophic property losses, have impacted rates on property insurance like never seen before.

On the auto side, the same can be said. Today it costs more to total a car or repair a vehicle than any time in our history.  As the price of repairs and new autos climbs, expect insurance rates to do the same.

For example: interior construction is up 57%; lumber is up 52%; and roofing is up 36% since 2019.  As it costs more to settle these claims, it affects the premiums we pay.  

On top of that, 18 separate billion-dollar weather events in 2022 and 12 separate billion-dollar weather events in 2023 through June have forced insurance carriers to take unprecedented actions.

The cost of doing business for insurance carriers has risen. The bottom line is that it's costing insurance companies more money to do business – forcing local insurance agencies to react to these inflationary challenges.

A few things you can do to stay proactive as a consumer:

* Discuss any home improvements or major renovations.
* Take the highest deductibles you can afford.
* Eliminate small claims.
* Keep your driving record clear of violations.
* Take advantage of full pay discounts.
* Most importantly, stay in contact with your insurance advisor and annually review your coverages.

Contact a Smith & Eddy agent to assist you with home and auto insurance needs. Call 231-757-4743 or visit their website for more information:

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