Why are my premiums going up?
In the insurance world, we are now experiencing what they call a “hard market.”
So, what does that mean?
- Rates and coverage amounts are increasing. Many premiums are increasing due
to inflation costs of materials, replacement parts, labor, medical costs, increasing
accident severity, and the insurance company’s own rising reinsurance costs. - Certain optional coverages are being reduced or removed.
- Companies are restricting what they take and are adopting a more cautious and
selective approach when underwriting insurance policies on new business and
renewals. Insurance companies are even non-renewing policies with certain risks
or certain or numerous losses.
What can you do?
At Saylor Insurance, we watch every renewal to see if there is a lower cost option for you,
so you do not have to worry. We also make sure you are getting all of the discounts you
qualify for. In the end, it may mean the best option for you is to stay where you are at,
but we can do a thorough review of your policy to see if there are any alternatives, such
as increasing deductibles to help offset the rising premiums.
Hard markets are cyclical and are often followed by a period where premiums stabilize,
coverage becomes more widely available. Policyholders should keep in mind that while
hard markets can result in higher premiums and reduced coverage options, insurance is
a critical tool for managing risk and protecting assets, and it is essential to maintain
adequate coverage even during challenging market conditions.