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Insurance Rates and Inflation



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.

How can I lower my premiums?

How to save on your home insurance:

  • Get rewarded for being a safe homeowner by remaining claims-free for 5 or more years

  • Explore payment options like automatic payments or paying for the year in full

  • Increase your deductible

  • Bundle with your auto insurance and save

How to save on your auto insurance:

  • Maintain a good driving record and participate in safe driving mobile apps offered by insurers to receive additional discounts

  • Explore payment options like automatic payments or paying for the year in full

  • Increase your deductible

  • Bundle with your home insurance and save

We are here to help!

At Cisper Insurance, our commitment is to ensure those that we work with have the appropriate amount of insurance to protect their assets while paying the best rates possible.


Contact us today to discuss your insurance needs and make sure you are getting the most value for your hard earned dollar.



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