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Understanding the Personal Insurance Marketplace: Why Are Rates Rising?

Screenshot 2024-10-23 at 9.09.23 AM

If you’ve noticed your auto and home insurance premiums going up recently, you’re not alone. The personal insurance market has seen significant changes over the past few years, with several factors driving these increases. Here’s what’s happening:

1. Inflationary Costs and Supply Chain Issues: The cost of repairing vehicles and homes has risen dramatically due to inflation and ongoing supply chain disruptions. Parts and labor are more expensive, which means insurance carriers are paying out more for each claim. As recently reported by “Forbes” and “The Wall Street Journal”, material and labor shortages have inflated repair costs by double-digit percentages over the past two years, putting upward pressure on premiums.

2. Severe Weather Events: Extreme weather events—hurricanes, floods, and wildfires—are becoming more frequent and severe. This has led to a significant increase in catastrophic claims, especially in states like Florida and California, where many carriers are either ceasing operations or limiting new business. A “New York Times” article highlighted that insurance giants have started pulling out of high-risk areas, creating fewer choices and higher premiums for consumers.

3. Rising Claim Values: Even though the number of claims has remained relatively flat, the average claim value has doubled in just three years in our office. This aligns with trends reported across the industry, where more costly repairs and higher payouts are driving up overall claim costs, as shared by “Insurance Journal”.

In these challenging economic times, we understand that every household dollar matters, and these price spikes are tough on everyone. At Stahlka Agency, we’re doing everything we can to help our clients navigate this changing landscape:

– Bundling policies to help you maximize savings.

– Reviewing your coverage to ensure you’re taking advantage of all available credits and discounts.

– Suggesting higher deductibles for clients who want to manage premiums while still being well-protected.

– Providing guidance on how to protect your home and vehicles and mitigate future risks.


As an independent agent, we represent multiple national and regional carriers, which allows us to offer more options than many others in the marketplace. We’re here to make sure you’re with a financially stable carrier while keeping your premiums as competitive as possible.

If you have any questions or would like to review your current coverage, we’re here to help. Let’s have a conversation about how you can navigate this challenging marketplace and ensure you’re properly protected.

Mark Stahlka, President

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