Well… I received a lengthy explanation from my insurance agent (details below)… all I can say is
from my agent…
I can give you a brief summary and let you know that on the auto side and what has caused these increases.
from my agent…
I can give you a brief summary and let you know that on the auto side and what has caused these increases.
- Cost of New and Used Cars are up 37% Since March of 2020
- Maintenance and Repair Costs up Approx 29% Since March 2020
- Car Parts and Equipment up Approx 21% Since March 2020
- RE-Insurance Cost up substantially and deductibles up on Auto’s due to storm and claim related losses
- Length of time for service car after claim has increased by 42% and that has led to increased cost for car rental and storage fee’s
- Car Insurance Inflation hit a 47 year high year over year in December of 2023. The fastest rate of inflation since December of 1976
- Claims frequency and severity up since March of 2020.
- Claims have dramatically increased across the US with the costs of the claim events becoming much larger than they used to be
- Reinsurance is passing more of those costs on to the Insurance Company with higher Deductibles and Claim amounts until it reaches reinsurance.
- Residential Construction Goods up Approx 38% since March 2020
- Residential Construction Services up Approx 27% since March 2020
- Transportation of Freight up 20% Since March 2020
- Construction Inputs such as Lumber, Concrete, Building Materials, Copper, and steel up on average 37.6% approx. since March 2020. (Good news on some of this is these costs have down a little bit from the peak during that time period)
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