Why are Home and Auto Insurance Rates Going up in 2022?
The world is constantly changing and it’s possible your home and auto insurance rates could be affected in 2022.
Due to an increase in claims over the last few years, we are seeing increases in the cost of homeowners’ insurance. Claims from Wildfire, Hurricane, Tornados and Floods throughout the USA have been exponentially higher in the past year. With record home losses and the cost of rebuilding homes increasing, you will also see an increase in homeowners’ insurance.
If you own a home in a remote or rural area expect your increase to be larger than an urban area. If your home is a nice cabin in the woods, you may have a hard time insuring your home in a standard insurance market. Your agent may need to help you evaluate other options.
In 2021, Bancorp saw many insurance companies shift to not insuring homes in certain zip codes, cities or states due to potential loss.
With supply chain woes affecting car sales and repair you may see a moderate increase in your auto insurance cost.
Another factor increasing premiums is the return to work, events, etc. and having more drivers on the road, after a lull of no driving due to COVID. Insurance companies were surprised by the sudden substantial increase in auto accidents.
A sudden increase in claims can affect home and auto insurance rates.
More claims are leading to higher rates for umbrella insurance. Make sure to check your homeowners and auto insurance limits to see if they need to be raised.
Umbrella insurance normally only kicks in if your primary (home or auto) insurance limits are reached. This means everyone should take a look at their home and auto insurance rates and make sure they are high enough in case of a bad accident/claim.
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With the passing of the Cares Act of 2021, health insurance rates have stayed steady. However, the amount of government subsidy has increased making health insurance more affordable.
The Act is set to expire in 2023 so without action from our government do not expect to receive such a great deal on your health insurance going into the future.
In Deschutes County, Oregon we have seen an increase of Medicare Advantage plans which has been good for anyone on a budget.
With increased competition, Deschutes County got the first $0 plan in 2021. There are also many options with monthly premiums ranging prices from $0-$210.
You can shop your Medicare Advantage and Prescription Drug plan each year during the Medicare Annual Enrollment Period from October 15th – December 7th.
If you are currently on a Medicare Supplement plan, you can shop your plan the month of your birthday.
To Sum It Up
Home and Auto Insurance Rates as well as Umbrella insurance prices are increasing. Health and Medicare are stable for now.
90-60 days before your Home/Auto renewal give Bancorp Insurance a call at 1-800-452-6826 to shop your insurance. It is free to shop, and you might be able to save money.
Bancorp’s insurance experts are available to provide you with a free review and consultation. Contact Us – Bancorp Insurance Call 800-452-6826
Disclaimer: This content is provided for general information purposes and is not intended to be used in place of consultation with our agents. These predictions are based on observations within our agency and markets. Trends may not be relative or affect your particular policy. We cannot be held accountable for any particular changes in the industry or from our carriers.
