As we roll into the new year there is a common theme across the globe—inflation. What started out as a short term rise in prices has turned into a new reality, everything costs more. Insurance is no different than any other industry. Below is a tweet I put out this morning showing an article on the front page of the Wall Street Journal on Feb. 9th, 2022:
Car insurers are rapidly raising rates to try to get ahead of inflation, which has boosted the prices of car repairs, replacements and rentals https://t.co/LtdWdn9Gas
— Dove Insurance (@DoveInsurance) February 9, 2022
Why Are Insurance Rates Rising Nationwide?
Just like prices at grocery stores, dealerships, and restaurants are rising for various factors, so too is insurance. According to the above WSJ article, “Insurers are feeling pressure on all sides of their business. Traffic is at or near pre-pandemic levels across the U.S., and accidents have risen from their lockdown lows. More accidents mean more replacement cars and repairs. Used-car prices have soared as semiconductor chip shortages reduced the supply of new cars. The higher prices are reflected in insurer payments for totaled vehicles.”
Meanwhile, auto-body shops are taking longer to fix cars and this means more covered days on rental cars from insurance carriers. By the way, rental car prices have drastically risen too. Large accidents are at an all-time high and so too are crashes with fatalities.
Does this mean your rate will increase? Not necessarily. Your rate and policy situation depends on numerous factors but generally speaking the insurance industry is seeing higher prices.
How To Offset Rising Insurance Rates
Perhaps the easiest way to offset rising insurance rates is to work with an Independent Agent. Instead of working for a large insurance company, Independent Agents represent multiple insurance providers. At Dove Insurance we have helped families across the Commonwealth of Virginia to provide multiple insurance services. We’re family owned and operated, and take pride in reaching all across Virginia.
Let us help with your Home, Auto, Motorcycle, RV, and rental properties today. It’s free to quote, and we’ll compare rates with multiples carriers to get you the lowest price without sacrificing your coverage limits.
It’s easy to switch and you’ll get a refund from your prior carrier as they’ll only charge for the number of days the policy was in force.
Too Busy to Call?
Try our text only line to talk with our Family of Independent Agents:
TEXT US AT (540) 253-1253
No Matter Where You Live In Virginia
We’re located in the heart of the New River Valley and have been since the beginning. Yet each and everyday we speak with residents across our Commonwealth from Bristol to Blacksburg, Roanoke to Lynchburg, Richmond the Virginia Beach, and any location in Virginia.
Let Us Help
And the best part, we’re here for you when needs arise such as policy changes, billing questions, reporting claims, or questions regarding coverage.
We’re here to serve you.