Why are my insurance rates STILL going up?

Published by crgservices on

From all of us at CRG, we thank all of you for your patience and understanding as we push through a very difficult time for insurance. If you’ve been lucky enough to not notice, insurance rates across the entire industry have been increasing significantly in recent years. It’s even gotten to the point that several news outlets have started to pick up and report on it. There are a number of reasons for these increases, and we will revisit those in this newsletter.


The biggest cause of rising home rates stems from inflation. Inflation has caused material and labor costs to skyrocket in the recent past. Home insurance policies are usually rated based on the replacement cost of your home, which is a calculated dollar amount for what your home would cost to rebuild, as is, with all new materials and also factors in labor. Seeing as material costs are going up, replacement costs are going up as well. And as you probably can guess – the higher the amount the home is insured for, the more it will cost to insure.

There has also been an increase in severe storm frequency in recent years. This increase in frequency and inflation pushing up costs have compounded into the result of claim payouts being significantly higher than in the past.

Policyholders should also be aware that most carriers have started to mandate minimum deductibles on home policies and have also adjusted how they insure roofs. For more information on your specific policy, refer to your latest policy renewal or contact your agent.


Much like home insurance, auto insurance increases are occurring to keep up with rising car prices/values and rising repair costs. Auto claim costs are on the rise for carriers as a result of these increases, so they have needed to raise rates to counteract this.

Also, keep in mind that there was a sharp decrease in the amount of driving by the average insured during the pandemic. There was a period when auto rates decreased because of this. Now that driving habits have returned to normal, auto rates have adjusted back up as well.

Understanding the Increase

While it’s hard to accept the fact that your insurance rates have gone up despite the fact that you haven’t had any claims or tickets, it’s important to remember that these increases are needed. Policyholders pay premiums in return for the carrier providing insurance on their auto, home, etc. That money is used to pay out claims to the carrier’s policyholders as needed. With the sharp increase in claims frequency and claims costs in recent years, carriers have been forced to increase premiums in order to make sure they can properly insure each of their policyholders.

To illustrate the impact that claims have had on all insurance carriers in recent years, a handful of carriers have made the difficult decision to pull out of personal lines insurance entirely (personal lines – auto, home, umbrella, etc.). Negative results in recent years have led to this unfortunate decision.

Limiting the Increase

Now is a great time to remind you that your agent is always keeping your best interests in mind. They are and have been seeing these renewal increases for a while now, and each renewal that comes across their desk is being re-evaluated to make sure the policyholder has the best fit for their insurance. While they can’t predict future insurance rates, they can recommend options to be set up in the best position moving forward. They are also a great resource to discuss any questions you have on your policy or to get their expertise on your specific situation.

Again, all of us at CRG thank you for your patience, understanding, and continued business. The current situation in the insurance industry is volatile, but trusting a CRG agent with your insurance needs assures your best interests will always be put first.