Major Inflation Impacting Your Insurance Rates

Michigan Insurance Rates Inflated 2023Opening your insurance renewal to see it went up 25%, 50% or even 100%? These steep increases have hit many other states in 2023 and are now being seen in Michigan.

Why are rates increasing in 2023?

  • Continued rising costs to rebuild and repair homes that suffer damage due to inflated labor and material costs.
  • Higher auto repair costs due to inflated cost of parts, as well as supply chain issues that have damaged vehicles in body shops for months
  • Frequency of auto accidents has increased substantially since Covid with a larger percentage of severe claims.
  • Reinsurance costs to the companies that get passed on to us. When a company takes on a higher risk of property or liability, they insure that just like we do. 

Below we have some suggestions to offset some of the increases you may see: 

  •  Multi-Policy Discounts. Having your home, auto (even business) policies with the same company will save you 5% to 12% on EACH policy. 
  • Consider Higher Deductibles. The standard home deductible is now $1,000 and if your home is over $500,000 in value, you may want to consider a $2,000 or $2,500 deductible.
  • Make sure your home and auto are placed in the group that provides you the largest discount. Many companies provide 5-15% off your policies for memberships in various groups.
  • Be leery of quotes offering to save you big $$. Compare liability limits, deductibles, and coverages. Saving $300 on your home policy won’t mean much when you discover your $350,000 home that had a $1,000 deductible now has a 2% or $7,000 deductible !