Understanding the reason behind higher insurance rates in 2023

In 2023, many people have noted an increase in their property and casualty insurance rates. This might seem puzzling, but there are simple reasons behind this change. In this article, we'll explore why you may have noted an increase in your insurance rates.

1. Rising Costs

Everything seems to be getting more expensive, and that includes fixing or replacing things when accidents happen. When you make a claim, the insurance company has to pay to repair or replace what was damaged. With the rising costs of materials and labor, these claims are costing more than before. As a result, insurance rates go up so that insurance companies can manage these higher costs.

​2. More Technology, More Claims

Our lives are becoming more connected with technology. While this is great in many ways, it also means that when accidents occur, there's more to fix. Our gadgets and appliances are getting more expensive, and when they get damaged, insurance companies have to pay more to replace them. This added cost is passed on to us through higher insurance rates.

3. Legal Stuff

Sometimes, things get complicated when accidents happen. People might sue for more money than before, leading to longer legal battles and bigger payouts. Insurance companies have to set aside more money to deal with these situations, which means they need to charge more in premiums to cover these potential expenses.

Conclusion

While it might not be fun to see higher property and casualty insurance rates in 2023, there are simple reasons behind this increase. More natural disasters, rising costs of repairs, expensive technology, and legal complexities have all contributed to insurance companies raising their rates.

Contact Holler Insurance to discuss your insurance needs - we are here to be your advisors and advocates! We will navigate this changing insurance market to be sure you obtain the proper coverage at the proper rates. y