Which Insurance Companies' Rates Have Risen .... and Why?

By: Woop Blog Group
Tuesday, February 7, 2023

Almost all the well-known insurance companies began increasing their rates in 2022. GEICO led the pack, with market experts saying they could have the largest total increase in auto premiums (compared to other major insurance providers). State Farm is following closely behind, along with USAA and Liberty Mutual. If you’re insured by Progressive, you’re in luck: they’re the only insurers who intend to decrease home and auto rates

You can blame your insurance company’s rising rates on three main issues: inflation, supply chain disruptions, and social/environmental changes. 

1. As you’ve probably noticed, inflation affects all areas of life; this includes your auto insurance. Even if you haven’t been in any recent accidents, added any new members/vehicles to a plan, or moved to a crime-heavy location (all factors that generally raise auto insurance rates), you may still be experiencing a price increase, due to overall market inflation. The cost of replacement parts for vehicles, and the price of cars themselves, have risen dramatically; your Collision rate may have risen in response. Similarly, healthcare costs have gone up, so your Personal Injury Protection rate (which insures you for bodily harm acquired during an accident) has likely also increased. If the cost of your home insurance has gone up, inflation is still partly to blame; housing materials and labor costs have increased in the past few years, leading insurance companies to increase their rates accordingly. 

2. Insurance company’s rates have risen due to a disruption in our supply chain. Returning to our pre-pandemic lifestyles has created a supply and demand imbalance. Things like leaving the house regularly, driving daily, and shopping for fun have seriously increased the demand for goods; however, the production industry is struggling to keep up with the sudden change, resulting in price increases. Right now, products like car parts and housing materials are more expensive due to a high demand and a low supply. Your insurance provider has likely risen your home and auto rates to ensure that, in the case of an accident, the price of your house’s roof or your car’s front bumper, for example, would be adequately covered. 

3. Your rising insurance rates can also be explained by the social and environmental changes we saw in 2022. Driving daily, whether it be for work, school, or entertainment has become normal again. This has unfortunately resulted in an increase of car accidents. “Even if you don’t make a claim, an increase in the volume or cost of claims from other drivers can boost auto insurance rates for all consumers in your city or state,” explains Mark Friedlander, the Insurance Information Institute’s Director of Communications. Changing weather patterns have also led companies to raise rates. As our planet suffers the effects of global climate change, our predictable weather patterns become not-so-predictable anymore. Natural disasters can cause serious damage to your cars and homes; hurricanes, tornadoes, and floods are becoming more frequent and more intense, so insurance providers are raising home and auto rates to protect your assets from weather-related damage. 

Prices are up, inflation is still rising, and likewise, insurance companies’ rates have also risen, but don’t fret - We got you covered! Even in an inflated market, Woop can find you the best possible options for optimal rates and coverage. Click here to compare your insurance options with all the major companies, and to find the most affordable and comprehensive home and auto coverage for you!