Why Insurance Rates Are Skyrocketing—and How to Save Money

Why Insurance Rates Have Skyrocketed Over the Past Year—and How You Can Manage the Increase

If you’ve seen your insurance rates go up over the past year, you’re not alone. Many individuals and businesses are facing rising premiums, which has led to frustration and concern about what’s driving these increases. While some of these factors are beyond our control, understanding why rates have skyrocketed can help you make more informed decisions—and there are steps you can take to help manage your costs.

At Treblestone Insurance, we work with multiple carriers and can help you navigate these rising rates, ensuring you don’t pay more than necessary. But first, let’s look at why premiums are rising so fast.

1. Economic Inflation

One of the biggest factors driving insurance rates higher is inflation. Over the past year, we’ve seen a sharp rise in the cost of everything—from groceries and gas to building materials and medical care. This overall increase in prices also impacts the insurance industry.

When the cost of repairs, medical treatments, or replacements goes up, insurance companies have to adjust their premiums to account for the higher claims they’re paying out. This is especially true for auto, home, and health insurance, where inflation directly affects the cost of claims.

2. Increased Frequency and Severity of Claims

Another reason rates are climbing is that insurance companies are dealing with more claims, and the severity of those claims is on the rise. Whether it’s more frequent car accidents, home damage, or health emergencies, insurers are paying out more than they did in previous years.

In addition to higher costs per claim, insurers are also seeing a rise in overall claims frequency. When there are more claims being made across the board, insurance companies raise premiums to balance out those costs.

3. Natural Disasters and Climate Change

In recent years, we’ve seen an increase in natural disasters, from hurricanes and floods to wildfires and winter storms. These events have caused billions in damages, leading to huge insurance payouts.

Insurance companies are adjusting their rates to reflect the increased risk posed by climate change and extreme weather. This is particularly noticeable in home and property insurance policies, where areas prone to floods, fires, or other natural events are seeing sharp increases.

4. Supply Chain Disruptions

Global supply chain issues have been a major factor in rising insurance costs, especially for auto and home insurance. The cost of vehicle repairs and home construction has surged due to shortages in materials, parts, and labor. For example, if a car is damaged in an accident, the parts needed to fix it may be harder to find and more expensive than before. This drives up the cost of claims, which is then reflected in higher premiums.

5. Rising Medical Costs

Medical care costs have also been rising sharply, and this has had a significant impact on health, life, and auto insurance premiums. Advanced treatments and pharmaceuticals come with higher price tags, and when these costs increase, so do the payouts for medical-related claims.

6. Underwriting Adjustments Post-Pandemic

The COVID-19 pandemic introduced unprecedented risks and uncertainties for insurers. Many companies had to reevaluate their risk models and adjust their underwriting practices to account for unexpected claims related to health, unemployment, and business interruption. This reassessment has contributed to higher premiums across the board as insurers brace for future uncertainties.

How Treblestone Insurance Can Help You Manage Rising Costs

While all these factors contribute to higher insurance rates, there are ways you can manage these increases—and that’s where working with an independent insurance agency like Treblestone comes in.

As a brokerage, we aren’t tied to a single insurance carrier. Instead, we shop your policies across multiple top-rated carriers, ensuring that you get the best coverage at the most competitive rates. And it doesn’t stop there: every year, when your policy comes up for renewal, we re-shop your coverage to make sure you’re still getting the best deal.

By working with us, you can avoid being stuck with a single carrier that might raise rates significantly, while other carriers may offer better options. Our team is dedicated to finding the best value for you—whether it’s through bundling policies, increasing deductibles, or adjusting coverage levels to match your current needs.

Tips for Managing Your Insurance Costs

In addition to partnering with an independent agency like Treblestone, here are a few tips to help manage your insurance costs:

• Shop around: Don’t assume your current carrier has the best rates—always check with multiple providers, which we do on your behalf.

• Bundle your policies: Combining your home, auto, or business insurance with the same carrier often leads to discounts.

• Increase your deductible: Raising your deductible can lower your monthly premium, but make sure it’s still affordable if you need to file a claim.

• Review your coverage regularly: Your insurance needs may change over time. Regular reviews ensure you aren’t paying for coverage you no longer need.

Conclusion

Insurance rates may have gone up, but there are still ways to manage the impact on your budget. Working with an independent insurance agency like Treblestone Insurance is one of the best ways to make sure you’re getting the best coverage at the best price. We handle the legwork of comparing rates and reviewing your policies every year, so you don’t have to worry about overpaying.

If you’re concerned about rising insurance costs or want to explore your options, get in touch with us today. We’re here to help you navigate these challenges and find the best solutions for your insurance needs.