It has been a brutal year for personal lines customers for rate increases. If you have experienced the shock of seeing your home and auto rates skyrocket you are not alone. Just last month US News reported that from 2020 to 2024 insurance rates have jumped 20% across the country. It is actually worse in Arizona. In a study of rate increases from 2023 to 2024, Arizona is leading the nation in rate hikes.
Factors Driving Increased Costs
The analysts at US News point to inflation and weather disasters for your increased insurance costs. This means that what happens in Florida or North Carolina is putting industry pressure on your insurance carrier to raise your rates in Arizona. According to the report:
- Labor costs have shot up 25% since 2020
- The cost of lumber and other building materials rose “4.1% in 2023 compared to overall inflation at 3.2%. This means insurance companies are paying more to repair homes after a claim, and compensating by raising premiums.”
- Wildfire risks increased
- Labor shortages are increasing labor costs and compounding the problem. The US Chamber of Commerce estimates that “the country’s labor market has lost about 1M workers since 2020 at the start of the pandemic. This increased demand for workers pushes labor costs up, as well.”
- Crime Rates are increasing. The FBI reported a 7% uptick in property crime in 2022 which increases your exposure to break-ins, vandalism, and robbery. As your crime exposure increases, so do your insurance premiums.
What We Doing to Help Our Policy Holders
As part of our due diligence, we review every personal insurance renewal 45 days before the effective date to track rate increases. When rate increases are over 10%, it is our practice to remarket those accounts to try and contain price increases. Our Personal Lines Team estimated that we remarketed 50% of personal lines policies in 2023. That increased to 80% in 2024!
As you can imagine, Wilson Insurance has been busy using every tool we have to save our customers money. We have added support to our personal lines customers. We have also been securing new appointments to deepen our personal lines offering.
Summary
- We review every personal line renewal for rate increases. Accounts with >10% rate increase are being remarketed automatically.
- We hired additional staff to increase service and capacity
- New personal lines markets are being opened to Wilson Insurance in 2025, Q1. More to come on that!!
4 Tips to Save Money
- Increase your deductible. If you have a $500 deductible, consider raising it to $1,000. Just make sure you have enough money set aside to cover it should you have a claim.
- Adjust your coverage. If you have made updates to your home let us know. Updating your roofing, electrical, and plumbing can save you money. So can all of those renovations you completed when you were stuck at home during the pandemic.
- Hunt down discounts you qualify for. You may qualify for additional discounts. To make it easier to identify which discounts you may qualify for, we have listed them on our Personal Lines landing pages. This is an aggregated list from all of our appointed carriers. Check with us if a specific discount is available for your insurance company.
- Be vigilant with your credit score. Your credit history has an impact on your home insurance rates. According to a 2024 article by Bankrate, drivers with poor credit pay $4,349 a year compared to drivers with excellent credit who pay $2,033.
Call to Action
If you are interested in what Wilson Insurance can do for your personal insurance policy, reach out to us at 480-964-2400 or at [email protected]. You can also stop by our office and talk to us in person. We are a customer focused, family owned, and proudly independent insurance agency. We have been helping neighbors since 1987. We would love to earn your business!
Justin Chappell
VP Business Development
