Home and auto insurance premiums may not increase as much as in recent years, but the industry remains under pressure.
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Todd Jackson is chairman of the Independent Insurance Agents and Brokers of America. He recently spoke to Kiplinger about the outlook for home and car insurance prices in light of inflation and recent natural disasters — and how to cut the cost of your premiums.
Consumershaveseenpremiumsforhomeownersandautoinsurancerisesharplyinrecentyears.What’sbehindtheincreases?Thereareseveralfactors.Priorto2022,theinsurancemarketwentthroughaphaseoflower-than-normalhurricaneactivity.Buthurricaneactivityreallyspikedin2022and2023,whichcoincidedwithinflationaryincreasesinalotofdifferentsectorsthataffectedthehomeownersinsuranceindustry.
Ifyoulookattheconsumerpriceindex(CPI)ofallconsumergoods,pricesincreasedbyabout20%overallbetween2020and2024.Buttheconstructionindustrywashitmuchharder—35%to40%fortradeservices,lumber,concrete,asphaltandotherthingsthatarerequiredtoreplaceandrepairhomes.Inotherwords,theinflationaryimpactofgoodsandservicesaff
