Hi Barb. So with everything that’s going on in the economy, can you give any information about the insurance side of why the rates are going up?
Well, we are getting a lot of notifications from all of our carriers, preferred personal lines, and commercial lines, whether it’s home or auto as well. With homes, we’re seeing an increase in the cost due to material costs that are higher, lumber’s higher, we saw that impact first, higher labor costs. More firms are experiencing project delays, workforce shortages, and just supply chain and shipping delays. So that’s kind of impacting homes. So we’re seeing about a 10% increase across the board from all carriers.
On the auto side, it’s really very similar as well. Just higher prices for used cars. I mean, those are up 40%. New car inventories are dwindling. And so there’s a higher demand, and new cars are up as well. Repair costs are up due to labor costs, increase in labor costs, rise in the cost of car parts, people are in the shops with a repair for 30, 60 days. And just also an increase we’re seeing in rental cars. So all around, the state of the economy with inflation is impacting insurance as well. So the best thing to do is hang tight or call your agent for a quick review, and then they can put you at ease to make sure you’re getting all the discounts and bundling that you are qualified for.
Call Luczkowski Agency Insurance and Financial Services in Chesterland, OH at (440) 729-4042