If you have noticed your insurance bill has increased a bit since last year, you are not alone. As inflation continues to roar on, prices are jumping for clothing, groceries, pet food and yes, even car parts, repairs, and building materials.
Many carriers, including Erie Insurance, reduced rates during the COVID-19 pandemic while Americans sheltered in place. At the height of the pandemic, Erie issued an unprecedented 15% premium dividend on their entire automobile book & lowered rates an additional 15%. When we returned to normal driving behaviors in 2022, increased traffic and claims followed. Unfortunately, replacement auto parts have not yet returned to pre-pandemic levels and the lack of skilled labor returning has led to a shortage of auto technicians; all factors that are leading to a 24% spike in auto repair costs annually.
Similar challenges are impacting construction companies and building materials – prices for construction materials have increased by 46% since January 2020. Erie’s property products’ rates now need to catch up to the increased costs to ensure you have sufficient coverage should you need to replace, repair or rebuild after a covered claim. Other factors including the increased frequency and severity of catastrophic weather events, like hail, hurricanes, & wildfires, have led to an industry-wide increase in costs.
As insurance consumers ourselves, we understand the frustration of rising insurance premiums. We are always willing to review the coverage you carry and discuss possible options to reduce premiums. Sometimes this means sharing in the exposure by selecting a higher deductible or updating your usage. Feel free to call our team and chat about options that may be available to you to help reduce costs.
