Are your 2023 Rates going up? Not if we can help it!
With the new year comes new resolutions, new opportunities, and new worries. While this happens every year, we would like to minimize the “worries” department here. If you’re like us, you’re excited to see what can happen in another 365 days of working hard while expecting the unexpected. With many different situations over the past few years, 2023 seems like a fresh new start to many.
While we may try to predict the weather for Hurricane season, we can’t predict everything 2023 has in store for us or our customers, but we can be confident that we’re ready for what the year has to offer. Here is what you can expect in business and personal insurance in the new year, including premium increases and when is the best time to reshop policies.
How will inflation affect your insurance?
Today, prices seem to be rising everywhere you look. We find many things in our lives going up, such as the price of food and gasoline. While this has been the norm for a while, and it is unfortunate, the trend will also affect premium rates until 2023. You may have already noticed that insurance premiums have increased over the last few years, and this will continue as prices for many of the products and services we use and rely on every day. While we hope prices see a downward trend in the future, you may need to anticipate spending more this year.
How will my personal insurance be affected in 2023?
Price changes are everywhere; let’s take a quick look at what may be affected.
Homeowners Insurance:
Many homeowners or renters have already experienced a percentage increase in their home, condo, or rental property insurance premium over the past few years. Prices may be increasing but we’re working hard to provide comparable proposals to what you are used to now.
Inflation directly affects insurance rates for homeowners, renters, or condos. Why is this? This can be due to many repairs or renovations buildings see per year. With building materials and labor costs rising significantly in the past few years, expect this to translate into higher property insurance premiums. Hurricane season also adds insult to injury here and it’s no surprise that Hurricane Ian (2022) was the costliest on record for Homeowners and Flood Insurance claims.
Material and labor increases can also be seen because of supply chain issues as well. Consider these increased premiums due to the “domino effect” we have seen from the pandemic.
Governor Desantis called another special session to discuss the Florida Insurance Market in December 2022. While we are hopeful the steps taken will provide relief to Florida policyholders, we don’t expect the market to strengthen overnight. It is going to take some time to get things back to normal.
Private car insurance:
Aside from dealing with high gasoline prices, drivers may encounter increases in their auto insurance policy based on several factors. Many of these factors are already trends affecting drivers in 2022 and are expected to continue in 2023. While car dealerships have been getting more cars in, their prices have been staying on the higher end of the spectrum. As a result of higher prices across the board for vehicles from creation to importation, many sticker prices have been adjusted. When cars are more expensive to build, they are more expensive to repair and cost of claims has also affected Florida Auto Insurance rates.
As we continue into 2023, many of these increased rates may plateau as we are seeing a breath of fresh air in all parts of life.
What about Commercial Insurance? How can my Business increases be mitigated?
Risk managers can concentrate on incorporating stable and appealing lines of coverage, such as workers’ compensation which can be put into a package program. Many packages aim to improve pricing, terms, and conditions for more difficult lines, such as general and auto liability. This type of attention to cost-saving helps restructure insurance programs and considers alternative risk financing options. This can assist Insurance buyers in lowering their overall premiums and soften the impact of insurer rate demands.
Bundling is also an option. Our favorite trick is adding a Key Life policy to add significant discounts to Commercial Auto policies. We can also look at packaging multiple properties on one policy. It’s a lot of work but the benefits are great. We saved a local business owner $27,025.10 on their Commercial Property Policies in the Panhandle already this year!
What You Can Do to Save on Home and Car Insurance in 2023
Increase the deductible amount.
The more money you pay out of pocket when making a claim, the lower your monthly premium will be. However, this assumes that there is a liquidity reserve in case of loss.
This self-insurance strategy is not recommended for everyone. You should consult a financial professional to weigh the pros and cons of your personal monthly cash flow and investment strategy.
Take advantage of telematics discounts from your network operator if necessary.
Telematics? What is that? It is a research method of gathering information about mileage and driving habits. Some insurance companies believe in using real-time data to determine claims risk. You can get discounts if you choose to share your driving habits with a transportation company. It does not hurt to ask about this when it comes to auto insurance.
To bundle or not to bundle?
Bundling home and car insurance is often the best way to achieve efficient pricing. Carriers want to offer as many products as possible, and offer discounts to those who bundle. You may be surprised to hear that some bundles may cost more, so splitting them back into two separate policies can help you save money. There are many different formulas insurance companies do when you bundle but shopping around with Harris insurance can really start helping you figure out the details!
Look around to see if you can save money.
We’re not talking about checking the couch for a few dollars! If your renewals are high, we will help you! We look at all trends in the market while re-evaluating your policies to make sure there are more efficient ways to process your insurance. Whether you go with your existing insurance company or a different one, determine if the existing policy is still the best option for you. Otherwise, we may make adjustments in any way to help minimize rates going forward.
Remember to keep in touch with our friendly insurance agents if you need some quick info or advice. We are here to help answer any questions you may have when it comes to all things insurance! Drop us a line at service@harrisinsurance.com or call us at 850.244.2111
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
