Why do my insurance rates just keep going up?

The painful truth behind your rising insurance rates.....

We understand that seeing your insurance rates  go up, up and up, can be frustrating. At a time when many things cost more, it's important to be transparent about insurance premiums.

I am the owner of PNW Insurance Group and I will first share with you that my insurance renewal just came in.... I have an 88% increase on my home policy and a 45% on my auto.  The home policy did have some coverages increase as well, but the rate increase is not due to claims. It is mostly due to base rate increase only, meaning the rate they apply to everyone increased. It had nothing to do with me, my family, my needs - it just went up. Alot. Ouch. We all feel it.

First, I am going to summarize a few key points below. Please take a look at the other articles and videos we've created for more information.

Here's a breakdown of few key reasons why insurance rates are on the rise:

  • Rising Repair Costs: Inflation impacts the auto industry just like any other. The cost of parts and labor to repair vehicles, homes and other property has increased significantly. More sophisticated technology in newer cars also contributes to pricier repairs. Since insurers pay for these repairs, they need to adjust premiums to reflect the higher costs. Inflation and cost to repair affects home/property claims in the same way.
  • More Frequent Accidents: Unfortunately, data shows an increase in traffic accidents. This could be due to factors like distracted driving or a return to pre-pandemic traffic congestion. With more accidents, insurers pay out more in claims, leading to higher rates for everyone.
  • Extreme Weather Events: Climate change is causing more frequent and severe weather events. These events are causing catastrophic loses in many areas. While you might not live in an area hugely affected by them, insurance carriers are dramatically affected by them.
  • Wildfires: We see this here in Washington a fair amount but claims in other states affect us as well. The insurance carrier has to manage loss and risk in all the states they write policies in.

What You Can Do:

  • Consider a few things before you shop around: If you've been with the same insurance company for years and the rate increase is at all tolerable, consider staying put. Jumping around insurance carriers does actually adversely affect your insurance score.  If you do shop, make sure it is a substantial savings before switching. Also, make sure that new policy is fully issued and complete before you cancel your old one. 
  • Compare Coverages: ask the agent to match or improve what you have now and give them your current policy to do so.  Insurance agents don't set or control rate.  Find a reputable agent and there shouldn't be any worry about giving them a copy of what you have. Ask them to match or improve it. Don't be afraid to ask for explanation of coverages either!
  • Maintain a Clean Driving Record: Avoiding accidents and traffic violations is the biggest way to keep your rates low.
  • Increase Your Deductible: A higher deductible lowers your monthly premium, but you'll pay more out of pocket if you need to file a claim. Choose a deductible you're comfortable with.
  • Consider Usage-Based Insurance: Some insurers offer programs that track your driving habits and reward safe drivers with lower rates.

We're committed to providing you education to help you make informed decisions. By understanding the reasons behind rising rates, you can make informed decisions about your insurance. We encourage you to contact us if you have any questions or want to discuss your policy options.

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