Protecting You, Always: Our Commitment to Your Peace of Mind ContinuesPosted on Jul 10, 2023
You’ve probably noticed it. You probably read about it. You’ve probably seen it on the news. Insurance rates have been on the rise this year.
The reasons for this rise in costs are several and include the following:
- A large increase in the number of claims for home and auto, mostly since the easing of the pandemic. Some of the largest insurance companies in the USA have reported large underwriting losses in the years 2022 and the first part of 2023. Some of this is the result of people being back on the roads, and some is due to increased severity and frequency of storm activity, from Hurricanes to Tornadoes to hail, etc.
- Supply chain disruptions and increased demand have caused large increases in the costs of replacement parts for autos and building materials and appliances for homes. Costs have risen more than 50% over what they were in 2019.
- During the pandemic, insurance companies did not take any rate increases and, in some cases, reduced premiums. This has caused a backlog in the normal rate of activity that companies historically have engaged in.
While the news that premiums are going up might cause some panic, we are committed to continue taking care of, looking out for, and being able to provide the best value to our clients during this time.
As an agency, Otterstedt has been leading the industry with trusted experience spanning over the past century. Our balance of strength, experience, and insight, along with first and experience over the century, allows us to provide you with the most competitive pricing and the assurance that you are protected.
We value your trust and look forward to continuing to serve you for years to come.