Are you looking for the best auto and home insurance rate in Texas? Prices keep rising for everything, so it’s not a surprise insurance rates have also increased in the past few years. The pandemic, inflation, and supply chain crisis have strained the overall economic system down to the consumer. Here’s what you should know about rising auto and home insurance rates.
Materials Costs Are Skyrocketing
A key factor driving up auto insurance rates has been shortages in raw materials used to create car parts. So as the cost of making car parts has risen, auto repair shops have had to charge higher prices, which cuts into insurance industry profits. That’s why insurers must also raise their rates in this economic chain reaction. Rising costs for building materials like lumber and steel have played a significantly increased insurance rate hikes for home insurance policyholders.
Labor Costs Keep Going Up
Insurance costs have increased for several reasons, including the fact that labor costs have increased. During the pandemic, many laborers quit their jobs for better pay or more flexible working conditions. Many employers, including auto repair shops, had to ramp up benefits packages to attract more loyal employees.
More Claims Being Filed
Another reason you may pay a higher auto and home insurance rate today than a few years ago is that many more claims are being filed now. One of the main reasons for increasing claims has been natural disasters related to climate change. The more claims rise, the more insurance companies must raise rates, especially for customers that have filed multiple claims.
Inflation Compounds the Problem
Adding to the economic problems created by COVID-19 is inflation, which can diminish the value of home savings and investments. The Federal Reserve is working on reducing inflation by raising interest rates. However, as long as high prices persist in supply chains, businesses and consumers must deal with its effects on value. Inflation drives up costs for insurers regarding home or auto repairs.
Get in Touch with Knowledgeable Insurance Agents at Family Financials!
The best way to get an affordable auto and home insurance rate for all the coverage you need is to establish a relationship with an insurance broker who works with multiple insurance agencies. If you want to learn more about home and auto insurance for your personal needs, contact the team here at Family Financial Insurance Group. We are ready to help you.