What’s Causing the Rise in Insurance Rates?
Posted March 2, 2023
You’ve probably noticed that the rate for at least one of your insurance policies has risen substantially in the past few months. What’s causing this rise in insurance rates? We’ve broken down what’s causing auto, home, health, and group insurance to become more expensive.
Auto Insurance
- Supply chain issues triggering a shortage of chips and new cars
- An increase in the severity of car accidents (15% more fatal car crashes in 2022 than 2020)
- Labor shortages, wage increases, and an increase in bodywork costs
Home Insurance
- An increase in the cost of material goods for new home construction
- 423,000 job openings in the construction industry
- 15+ separate weather events with more than 1 billion in losses as of October 2022
Health Insurance
- Overall inflation, employee wage gains, and high costs of administration
- The rising costs of doctors’ visits, prescription drug costs, hospital costs, and expenses for basic coverage
- The higher cost of new treatments and increased care costs for patients managing long-term complex conditions due to aging or chronic illness.