California isn’t the only state where consumers are struggling with homeowners insurance. The insurance price quoting company, Policygenius found from May of 2022 to May of 2023, homeowners insurance prices rose an average 21%.
In the same study, Policygenius said 94% of the 17,401 homeowners from the 44 states studied saw rate increases when it came time to renew their policy. Rates rose by more than 20% in 26 of those states.
To contrast the urgency of the situation, no state saw increases above 19% from May of 2021 to May of 2022.
The lowest raises were on the East coast with Vermont seeing the smallest jump at 10%. Other states below 14% are the PIA Western Alliance States of California and Nevada and New York, Maine and New Hampshire.
California comes with an asterisk. Proposition 103 does not allow insurers to raise their rates all that high without approval from the California Department of Insurance and the state’s insurance commissioner.
As you know, that commissioner is reluctant to raise them which has led to an insurance crisis where several providers have stopped writing homeowners insurance in the Golden State.
Also, as most of you know, California Insurance Commissioner Ricardo Lara is now trying to correct that problem and allow insurers to raise their rates.
Home insurance costs started seriously growing in 2021 with a jump — on average — of 35%. From 2021 to 2022, Florida saw homeowners insurance prices rise 68% on average.
The PIA Western Alliance states of New Mexico and Idaho saw rises hitting 45% as did Texas and Colorado.
Those with 16% or below include the PIA Western Alliance state of Nevada, Wisconsin, Massachusetts and New Hampshire.
Consumers wanting auto insurance aren’t getting much of a break either. Premiums are growing so fast and so high that a lot of people are bagging their insurance policies and are driving without insurance.
J.D. Power tracks these things and says in the second quarter of 2023, a frightening 5.7% of households reported having at least one vehicle on the road without insurance.
That’s up from 5.2% in 2022.
The PIA Western Alliance state of Oregon saw a 47% increase in people driving without auto insurance. South Dakota saw a 108% increase. The good news for Hawaiians is that Hawaii saw a 37% drop.
Record numbers of people are also shopping their auto insurance. J.D. Power said the 12.5% increase of shoppers for the second quarter of 2023 is a record.
The price hikes come because of the high cost of claims. Auto insurers spent 12% more on claims and other costs than all of the income created last year.
Source link: PropertyCasualty360.com — https://bit.ly/3Q0FkHp
Source link: PropertyCasualty360.com — https://bit.ly/46yTaqZ