Insurance prices have been skyrocketing throughout 2022, and expert predictions don’t anticipate relief any time soon— home and auto owners insurance costs are projected to rise across the board in the new year, driving many consumers to turn to independent California agency insurance services to cut costs.
Here’s a summary forecast for auto and homeowners insurance in 2023:
Summary of 2022
It’s not news that inflation is driving costs nationwide, but it might surprise you that homeowners insurance is increasing at a faster rate than inflation. Prices in 2022 were already 12.1% higher than the previous year, adding an average of $134 annually to already high insurance costs.
Auto insurance also saw rapid increases, with an average 9% rise throughout the U.S. Inflation, supply chain disruptions, labor shortages and a change in post-pandemic driving habits are to blame for the increased prices. It’s important to consider updating your policies or using California agency insurance services to save money.
Homeowners Insurance in 2023
Homeowners coverage is projected to rise exponentially by an average of 9% in 2023, which means that in two years, homeowners will have seen an 18% increase in coverage costs. Damaging weather, supply chain disruptions and inflation will likely hit homeowners in full force in the coming year.
Auto Owners Insurance in 2023
Insurance experts are anticipating a 7% increase in the cost of automotive coverage in 2023. As inflation drives the prices for vehicles and maintenance, insurance companies have to pay more to fulfill coverage, which increases insurance prices for consumers. By the end of 2023, auto insurance rates will likely be 16% higher than they were in the beginning of 2022.
Cutting Home and Auto Owners Insurance Costs
To save money, experts recommend reviewing and updating your insurance policies— this can help you remove unnecessary coverage, find new discounts and ensure you’re receiving the coverage you need.
You can also turn to NHC’s California agency insurance services to help you switch and save. Contact us for insurance plans that match your budget and coverage needs.