Why Insurance Prices Rise
Do you wonder why your insurance premiums may rise when you haven't filed a claim or had any other incident normally associated with an increase in your cost?
There are numbers of factors beyond your personal situation that may cause the cost of your insurance coverage to rise. Here are 5 examples:
Increasing natural disasters: Increasing numbers of hurricanes, floods, tornadoes, wildfires) have caused substantial losses for insurance companies.
Inflation: The prices of goods and services are increasing at a faster rate than they have in recent years, which means that insurers will need to pay more to cover losses and damages.
Litigation Costs: Legal costs associated with lawsuits and liability claims are also on the rise, as well as amounts awarded, leading to increased premiums for liability insurance policies.
Cybersecurity risks: As businesses become increasingly reliant on technology, insurance companies have seen an increase in claims related to cyber attacks.
Pandemic-related losses: This has resulted in significant losses for the insurance industry, particularly in the areas of medical and travel/event cancellation insurance.
Bottom line? It's important for you to work with a local independent agent who better understands your specific situation and can help you get the right insurance coverage at the best possible price.
Comments are closed.