What we are seeing in auto and property insurance rates are VERY REAL!  Sometimes, we think WE – in Tennessee – are the only ones facing these upward premium changes.  But this time, it’s a national trend.  This article that crossed my desk from Bloomberg concentrates more on AUTO rates.  However, space in this article could equally be given to HOME insurance rates as well.  Unfortunately, according to this article and what I read from insurance companies and other sources, there’s no relief in sight for US car owners who’ve faced soaring costs of maintaining a vehicle in the past two years.

Prices of motor-vehicle insurance rose 20.3% in December from a year earlier, the biggest jump since 1976, according to the Bureau of Labor Statistics. That was the 16th straight month of annual gains exceeding 10%.

And insurance rates will probably keep on rising, propelled by higher costs of replacement parts and repairs, Bloomberg Intelligence analysts said last month.

Prices of used cars and trucks have come down from their peaks two years ago. But the December consumer-price index released last week showed an uptick in used-vehicle costs from the previous month, defying economists forecasts for a decline. The surprise monthly increase in that category was among the main drivers of an acceleration in the overall rate of inflation.

Even after a drop in 2023, used-vehicle prices remain up 38% since the start of the pandemic. As for new cars and trucks, prices are not increasing nearly as much as they did in 2022. On an annual basis, they were up only 1% in December.

Here at Benton White Insurance, we continue to research our portfolio of carriers to find the best price point for our insureds.  In some cases, a premium increased renewal remains most competitive (though hard to believe in some cases)!  Because we ARE INDEPENDENT and have choices for our clients, we continue to SHOP renewals for our clients to make sure their renewal is the best place for them to stay.  If it is not, we WILL make changes.

Thanks for your business and the opportunity you give us to work with you.  We always work hard to  ‘earn’ your business and right now, we’re really earning it as we watch all of this closely during 2024.

[Portions of this article taken from a public release by Michael Sasso | Bloomberg | January 12, 2024]