When determining insurance premiums, insurance companies look at a variety of factors including
industry trends like number of claims and costs to repair vehicles and homes. If those costs increase,
the price of insurance premiums will likely increase as well.
Unfortunately, due to inflation these costs are increasing. Building materials for homes are more
expensive, there’s a chip shortage driving up the cost of cars, and there’s also a labor shortage. These
factors mean the cost to repair your home and vehicle have increased in the event of an insurance
claim.
Why did your insurance rate go up this year?
Here are the challenges facing the insurance industry today that are contributing to increased costs:
1. Housing material and labor costs have increased
Lumber and other construction materials have spiked in price due to less availability making the
costs to repair and build homes more expensive. At the same time, we’ve also seen an increase in
the cost of skilled labor and the construction industry is down about 200,000 skilled trade workers1.
These factors have likely increased your property insurance costs.
2. The chip shortage
A crucial component of cars built today, fewer available chips results in more expensive cars, and as
the cost of cars rise, so does the cost to repair if an accident occurs.
3. Auto repair and labor costs have increased
With the chip shortage, more people are keeping their old cars on the road longer, needing more
repairs. The increased demand for car parts combined with supply chain issues, are leading to
inflated car part costs. Auto repair shops are also experiencing staffing shortages and increased labor
costs which are also driving up the costs of repairs.
If your insurance costs are increasing due to inflation, you may be wondering, how can I lower my
premium?
The good news is ABM Insurance & Benefit Services customers can benefit from several home and
auto discounts. We are an independent insurance agency that works with hundreds of insurance
companies to find a market that will provide you with the best value for the coverage you are
seeking. Visit us at www.getagreatquote.com
How can I lower my premiums?
How to save on your home insurance:
• Check for any home insurance discounts you may qualify for
• Get rewarded for being a safe homeowner by remaining claims-free for 5 or more years2
• Explore payment options like automatic payments or paying for the year in full
• Increase your deductible
How to save on your auto insurance:
• Check for any auto insurance discounts you may qualify for
• Maintain a good driving record or participate in a safe driving program like RightTrack
• Explore payment options like automatic payments or paying for the year in full
• Increase your deductible
• Bundle with your home insurance and save
If you’re not a current customer, get a quote or ask your insurance company how they can help you
save. I have a trained, licensed and experienced staff here to assist you. Call them at 800-362-2809.
- If you’re not a current customer, get a quote or ask your insurance company how they can help you
save. I have a trained, licensed and experienced staff here to assist you. Call them at 800-362-2809 – Request information at www.getagreatquote.com
We represent 50+ insurance carriers including: Progressive, Allstate, National General, Safeco, Liberty Mutual, The Hartford, Hippo, Travelers, Velocity, Sagesure, Safeport, Fidelity, Wright, ASI Lloyds, Homeowners of America HOAIC, Columbia Lloyds, Wellington, to name a few.