Why are my insurance premiums so high?
Have you recently opened your insurance renewal bill and noticed that the bill is higher? Don’t worry, you are not alone! Insurance companies across the country, including in Michigan are raising rates for several reasons and here are just a few below:
Your auto insurance is being affected by increases in the following:
- Repair costs have gone up on average 15%
- New car prices are up 12%*
- Used car prices are up 40%*
- Hourly labor has gone up 8.2%*
- Rental Car costs have gone up 30%*
Your home insurance is being affected by increases in the following:
- Building material are up 26%*
- Project delays are being experienced by 88% of companies*
- Difficulties finding workers in construction is being felt by 89% of firms*
- Supply chain disruptions are impacting 94% of Fortune 100 companies*
We are working hard to provide the best possible insurance program for you and your family but please understand that we don’t set the rates the insurance companies handle that part of the process. We just wanted to take a few minutes to explain some of what we are seeing across the country not just Michigan. These items above and your claims and MVR history along with other factors go into how the insurance company determines their rates for home and auto insurance.
If you have any questions, please contact us at 517-351-9117.
*Sources: NAHB, AGC, Accenture, U.S. Bureau of Labor Statistics, AutoRentalNews, CCC Intelligent Solutions, CNBC