Rate Increases

Why are my rates increasing so much?

Man are we all feeling this right now. I don’t see this post providing a lot of solace, but I’d like to take the time to at least share the why, because knowledge is king right?

• Home Rates have been impacted by 3 major things:
  1. Natural Catastrophes – Here in North Texas, we just cannot catch a break. It all started in 2021 with the major Ice freeze and we just have not caught up since. In two years since we had 9 total hail storms impact the area.
  2. Supply Costs – We keep hearing it but it is very true, supply costs in the housing industry are up 40-50% in the last 2 years, and that’s being generous.
  3. Labor Cost – With the high demand for new builds and repairs, labor costs have increased along with the supplies
• These 3 factors are the major drivers in increase claim payouts which has resulted in increasing premiums

• Auto Rates have experienced the same increase and for the most part, it is for the same 3 reasons as the home. However, there are a few additional factors playing a part.
  1. The increase in the value and cost of cars.
  2. Population – We have seen an unprecedented increase of people moving to North Dallas and this has caused additional congestion on the roads which leads to more accidents
  3. Distracted driving is on the rise causing an increase in auto accidents, including fatalities. The National Safety Council estimates that one in four crashes involved cell phone use.
• Medical costs are growing exponentially, affecting the amount paid on claims (over the last decade, bodily injury claim costs rose by 42%).
• The auto industry’s current environment has been well-documented in the media
  • Why car insurance rates are rising at a record pace
  • Auto Insurance Rates Spike, Get Ready to Pay More
  • Auto insurance rates rising at fasted rate in almost 13 years

So what can we do about rates?

Working with a Independent Agency is one of the best things you can do for the following reasons:

1. Access to more carriers! An Independent Agent is not restricted to one carrier so you have more options to more carriers and more programs to customize a policy for you.
2. With the ability to customize a policy, we can help narrow down the coverages you truly need and not pay for coverages you do not need.
3. The key is having a clear understanding of the coverages just so if you decide to remove a coverage, you know exactly what it means for you and the risk it entails.

If you would like to review your policy with a senior advisor, give us a call at 469-606-4590 or email us at info@lifelongins.com