OMG…My Insurance Went Up!

If you own a car, a condo, a house, or anything else that you have insured, you undoubtedly noticed your bill got a LOT larger recently. You probably have two questions:

1) Why?

2) What can I do about it?

The Whys

Insurance premiums increase (they almost never decrease!) because the entire insurance industry is based upon risk. If an insurer is more likely to face claims, or higher amounts of claims, it will protect itself by raising premiums.

So what in the world is going on to cause such stark increases? A lot of things.

A recent article in the Chicago Tribune highlighted some of the main reasons for increasing insurance premiums.

• Weather-related events; much related to climate change—both more numerous and more severe weather events (floods, fires) causing greater losses
• Increasing costs of things like building materials and car parts
• Tariffs, which cause some of those cost increases
• Lack of state regulation of insurance premiums

In the current situation, we have a perfect storm, pardon the metaphor, of more weather-related extreme events, occurring more often, causing higher levels of damage. To rebuild, repair, or replace, the parts needed cost more, and the insurers can raise their rates to whatever levels they choose because in many states, there is not a robust system of oversight.

What Can You Do?

You can either cancel all your insurance and live inside a bubble-wrapped shelter, or you can actively shop around for better deals.

As always, I strongly encourage people to NOT shop for insurance online. Instead, I strongly suggest using an insurance broker to hook you up with appropriate insurance. There are numerous reasons, the first of which is that brokers will often know what coverage you should have versus what you do have. So many people are not informed enough about insurance to even understand what they are buying or why it should cost what it does.

For example, if you live in a place where tornadoes regularly occur, you will want to ensure your roof is covered for replacement or repair if it is damaged in a storm. And you will want to know how much you are covered for—the last thing you need is to try to replace a roof with an amount of money that might not cover more than half the shingles needed to do the job!

Second, a broker will work with his or her customers to locate several appropriate insurance entities that can dovetail with what the customer needs.

Third, in the event of a claim, the broker will be able to run interference with the insurance company to make sure you are protected and covered.

Another way to protect yourself is to keep up regular maintenance of your home, your car, and to store important information in safe places. Make sure you get that roof inspected every few years or so. Keep your vehicle’s tire pressure properly monitored. If you have a basement flooding issue, have it professionally remediated.

Life is Expensive

Let’s face it; life is expensive. We understand that inflation has taken hold and prices for everything have gone up. However, without getting political, understand that tariffs, as instituted by the current Presidential administration, also contribute toward higher costs of goods, since tariffs are a tax on the purchase of goods. Tariffs are not paid by the country importing the goods; they get passed on to consumers. Also, the uncertainty created by these trade wars causes uncertainty and increases prices within the marketplace.

On the state level, be alert to what your state’s regulatory environment is like relative to the insurance industry. Can an insurer propose a rate increase of whatever it decides or must it justify such an increase as not “excessive, inadequate, or unfairly discriminatory?” Note that Illinois is a fairly loose state when it comes to this, meaning that your premiums that went up (mine sure as heck did) are a product of this.

So yes, your vote counts—and it affects your insurance premium.

Takeaways

• Insurance premiums are increasing all over by a lot
• Causes are numerous, but climate change and increasing costs of parts and supplies are major reasons
• Using an insurance broker may find you both a better deal and can help you spot holes in your coverage

Contact Chicago Personal Injury Lawyer Stephen Hoffman

As in all cases involving personal injury, auto crashes, dog bites or injuries, workers’ compensation, medical malpractice, or other injury and potential liability, if you have been hit by a vehicle immediately get medical treatment, report the crash to police and your own insurance company, and contact a lawyer with expertise in your type of case, such as bicycle accidents or pedestrians hit by cars.

If you've been in an accident and have questions, contact Chicago personal injury attorney Stephen L. Hoffman for a free consultation at (773) 944-9737. Stephen has 35 years of legal experience and has collected millions of dollars for his clients. He is listed as a SuperLawyer, has a 10.0 rating on Avvo, and is BBB A+ accredited. He is also an Executive Level Member of the Lincoln Square Ravenswood Chamber of Commerce.

Stephen handles personal injury claims on a contingency fee basis, which means you don’t pay anything up front, and he only gets paid if you do. Don’t wait another day; contact Stephen now.