Your food bill is higher, your electric bill is higher, and the cost of gas is higher. If it makes you feel any better, you’re not the only one experiencing higher “everything.” Every American is paying more for what they eat, how they power their home, and how they fill up their tank.
Unfortunately, every American can also expect their insurance to increase during 2023 and beyond. Carriers like Geico, State Farm, and Allstate are raising their rates in majority of US states, and they’re not the only ones doing so. The average, national rate increase is 4.9%, according to S&P Global Market Intelligence. This has led nearly every policyholder we service to ask us these questions:
• How Much Does Insurance Cost in My State?
• Which Carriers Increased Their Rates?
• How Does My Carrier Determine My Rates?
• Why Does It Cost More to Insure My Vehicle and Home Every Year?
• How Can I Manage My Insurance Rates?
In general, the answer to the “Why did my insurance increase?” question is:
First, after most people received the COVID-19 vaccine, they returned to their normal activities. Roads that had been vacant for a year were suddenly flooded with an influx of drivers, which led to an inevitable surge in accidents. Second, because of supply chain inefficiencies and material deficits, the cost of new vehicles increased by 11.4% in 2021. Consumers then turned to the used vehicle market, which also saw a 7.1% increase. Now, vehicles are not only pricier to purchase, but they’re also pricier to replace. Third, the cost of healthcare skyrocketed due to labor shortages and an extreme demand of workers.
Lastly, keep this quote from Mark Friedlander, the Insurance Information Institute’s Director of Communications, in mind: “Even if you don’t make a claim, an increase in the volume or cost of claims from other drivers can boost auto insurance rates for all consumers in your city or state.”
Using a different visual:
If you’re questioning the rate increases instituted by your carrier and state regulators, good – it means you care! We, at Woop, also care about why you’re paying more for insurance every year. That’s why we built a system where customers are met with empathy from agents at every step of their journey; where information and knowledge are shared to empower the consumer; and where technology is used to simplify and accelerate processes. In short, we embraced technology to optimize your insurance-buying experience. We can’t fix the market, and we can’t fix the economy; however, we can make sure you’re getting the best possible rates without compromising your coverage.
If you truly want to find out why your rates increased and then actually do something about it, hit us up directly!
