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Why Insurance Premiums Keep Rising and What You Can Do About It
Insurance premiums for auto, home, health, and business coverage have been steadily increasing in recent years. Many consumers are feeling the financial strain and wondering why rates continue to climb and what steps they can take to manage expenses. This article breaks down the primary factors behind these premium hikes and provides strategies to help keep costs under control.
Why Premiums Are Increasing
1. Market Concentration and Reduced Competition
According to the Government Accountability Office (GAO), private health insurance markets are becoming more concentrated, leaving fewer insurers in the marketplace. Less competition often leads to higher premiums.
2. Rising Claim Costs from Natural Disasters and Climate Risk
The U.S. Treasury reports that homeowners’ insurance premiums grew 8.7% faster than inflation between 2018 and 2022. In high-risk regions impacted by hurricanes, floods, and wildfires, some homeowners have seen premiums surge by as much as 82% compared to those in safer zones.
3. Healthcare Costs, Prescription Drugs, and Policy Instability
Healthcare costs continue to rise, and premiums for Affordable Care Act (ACA) Marketplace plans are projected to increase by a median of 15% in 2026, the largest jump since 2018. The GAO also links higher premiums to insurer consolidation. Additionally, a Department of Labor report highlights that increasing prescription drug prices are significantly driving up health plan costs.
4. Tariffs, Supply Chain Pressures, and Repair Costs
Auto insurance is feeling the impact of global supply chain issues and tariffs. Rising repair costs and new tariffs on imported auto parts could push full-coverage auto insurance rates up by about 7% nationwide.
5. Personal Risk Factors and Pricing Practices
The National Association of Insurance Commissioners (NAIC) notes that personal characteristics such as driving record, claims history, location, and even credit score strongly influence premiums. Research shows that homeowners with low credit scores may pay nearly $2,000 more per year than those with excellent credit.
Why Independent Insurance Agents Matter
Captive agents represent just one company, which limits their ability to compare policies. Independent agents, on the other hand, work with multiple insurers. This allows them to shop around for better rates, customize coverage to your needs, and help you find more affordable options.
Local Insurance Support in Fort Myers, FL
Managing rising insurance costs can feel overwhelming, but you do not have to handle it alone. For over 35 years, John Perry Insurance has supported individuals, families, and businesses in protecting what matters most.
As an independent agency, we partner with multiple trusted carriers to compare policies and secure the best coverage at the most competitive rates. Whether you need homeowners insurance fort myers, boat insurance Fort Myers fl, car insurance fort myers, motorcycle insurance fort myers, umbrella insurance coverage Fort Myers, auto, business, flood, or life insurance, our team is committed to making the process clear, stress-free, and cost-effective, so you can focus on peace of mind instead of rising premiums.
Learn More: www.johnperryinsurance.com/why-insurance-premiums-keep-ri...
Why Insurance Premiums Keep Rising and What You Can Do About It
Insurance premiums for auto, home, health, and business coverage have been steadily increasing in recent years. Many consumers are feeling the financial strain and wondering why rates continue to climb and what steps they can take to manage expenses. This article breaks down the primary factors behind these premium hikes and provides strategies to help keep costs under control.
Why Premiums Are Increasing
1. Market Concentration and Reduced Competition
According to the Government Accountability Office (GAO), private health insurance markets are becoming more concentrated, leaving fewer insurers in the marketplace. Less competition often leads to higher premiums.
2. Rising Claim Costs from Natural Disasters and Climate Risk
The U.S. Treasury reports that homeowners’ insurance premiums grew 8.7% faster than inflation between 2018 and 2022. In high-risk regions impacted by hurricanes, floods, and wildfires, some homeowners have seen premiums surge by as much as 82% compared to those in safer zones.
3. Healthcare Costs, Prescription Drugs, and Policy Instability
Healthcare costs continue to rise, and premiums for Affordable Care Act (ACA) Marketplace plans are projected to increase by a median of 15% in 2026, the largest jump since 2018. The GAO also links higher premiums to insurer consolidation. Additionally, a Department of Labor report highlights that increasing prescription drug prices are significantly driving up health plan costs.
4. Tariffs, Supply Chain Pressures, and Repair Costs
Auto insurance is feeling the impact of global supply chain issues and tariffs. Rising repair costs and new tariffs on imported auto parts could push full-coverage auto insurance rates up by about 7% nationwide.
5. Personal Risk Factors and Pricing Practices
The National Association of Insurance Commissioners (NAIC) notes that personal characteristics such as driving record, claims history, location, and even credit score strongly influence premiums. Research shows that homeowners with low credit scores may pay nearly $2,000 more per year than those with excellent credit.
Why Independent Insurance Agents Matter
Captive agents represent just one company, which limits their ability to compare policies. Independent agents, on the other hand, work with multiple insurers. This allows them to shop around for better rates, customize coverage to your needs, and help you find more affordable options.
Local Insurance Support in Fort Myers, FL
Managing rising insurance costs can feel overwhelming, but you do not have to handle it alone. For over 35 years, John Perry Insurance has supported individuals, families, and businesses in protecting what matters most.
As an independent agency, we partner with multiple trusted carriers to compare policies and secure the best coverage at the most competitive rates. Whether you need homeowners insurance fort myers, boat insurance Fort Myers fl, car insurance fort myers, motorcycle insurance fort myers, umbrella insurance coverage Fort Myers, auto, business, flood, or life insurance, our team is committed to making the process clear, stress-free, and cost-effective, so you can focus on peace of mind instead of rising premiums.
Learn More: www.johnperryinsurance.com/why-insurance-premiums-keep-ri...