PSA! Significant Changes in the Insurance Industry and WHY?! Image

PSA! Significant Changes in the Insurance Industry and WHY?!

March 1, 2022


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Insane Market

It is very noticeable how unstable the current market is and how significant changes are being made in the insurance industry. I have taken the time to make some observations in order to provide proper guidance and to teach all my customers about today’s insane market.

 

Costs 

Firstly, you may not realize but the value of your car has most likely skyrocketed within the last year. Thus, you shouldn’t be shocked when you see a payment increase as you renew your insurance. The main reason for this increase is the difficulty to get parts. When the parts do arrive they are valued higher than ever before. Also, if your car is valued over $25k, please do not bother asking for the bare minimum state liability insurance. Why…?! Imagine crashing into your neighbor’s $80k Tahoe or having a vehicle that is now worth $30k… you’re underinsured. It is also strongly advised that all customers increase the rental reimbursement to $50+ a day. The average price for a rental car is $70 a day. That is if you can even find one. Keep in mind it’s taking longer to fix cars due to no parts and if you are out of pocket for a rental $20+ a day because you only had $30 a day in coverage…that adds up fast!

 

Inflation= Rate Hikes

Secondly, due to inflation, cost of labor and shortage of materials home insurance has also erupted like never before. The cost to completely replace your current home has increased on average 40%!!! Your inflation endorsement will increase the coverage to cover it but premium will also rise significantly. This is happening with every company no matter who you are insured with. In the extremely litigious state of Florida, many insurance carriers are going out of business, bankrupt, or leaving the state because of the numerous amounts of law suits. From the slim choices in carries that are left, you can cut that number down some more because half if not all of the remaining carriers are being SUPER cautious about the homes they choose to insure. You have a 15 year old roof? Not a chance. A 14 year old water heater? You can just forget about it.

 

Call Now

 Please make a phone appointment with your agent to go over this as soon as you can. It’s extremely important and please be patient. We are freaking out over it too. We have never seen anything like this market and its likely going to get worse before it gets better!!!

 

Key Takeaway 

My number 1 Tip: Always keep your credit score up and don’t file unnecessary claims. You will become the customer everyone wants and rates reflect it. And yes by the way, I do like chocolates.

 

PSA by Angela C. Duncan

Agency Owner

Office: (954) 903-0720

Angela.Duncan@weinsuregroup.com

www.WeInsureGoldCoast.com

The information contained in this page is provided for general informational purposes only and may not be applicable to all situations. WeInsure makes no guarantees of results from the use of this information.