MONDAY, MAY 1, 2023
Did you know that the cost of insurance, auto and otherwise, is on the rise? Did you suspect this increase had something to do with inflation? Chances are, it does. Rising prices can affect what we‘re paying for products, services and necessities—including auto and home insurance policies.
In this blog, we‘ll explain how inflation impacts what consumers pay for these two types of insurance so individuals and businesses can better understand why their premiums could be higher than in previous years. 
Understanding Inflation and What It Means for Auto and Home
Inflation can have a major impact on the costs of running a car or owning a home, but what is it exactly? In general terms, inflation is an overall increase in prices that means you need more money to buy the same goods and services. The U.S. Bureau of Labor Statistics (BLS) reported that the consumer price index (CPI) rose 6% year over year in February, slightly down from 6.4 % in January. This is the eighth consecutive month the CPI has declined and marks the lowest reading since September 2021.
Despite these declines, consumer prices are not necessarily falling. Inflation in the auto and homeowners insurance industry drives repair and replacement costs, supply chain and labor market shortages, and medical expenses, all of which translate to higher loss frequencies and severity of claims. In an effort to remain profitable, insurers then look to pass along their rising costs to consumers, which is where the increased premiums come into play.
What Can I Do?
Although inflation is continuing to decline, its effects are ever-present. As a consumer, it‘s important to keep an eye on these changes while taking proactive steps to ensure you‘re getting the best deal possible. Working with an experienced agent, such as Ten Eyck Group, can help keep your costs as low as possible.
It‘s also worth considering bundling your home and auto insurance if you need both. The combination can often result in lower premiums. If you‘re looking for the most cost-effective coverage, don’t hesitate to contact Ten Eyck for a quote today. In this ever-changing market, it pays to do your research and make sure your personal finances are protected from inflationary woes.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
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