Well the truth is most people do not know much about insurance. This blog will focus on all things insurance related. If you feel like I have helped you, share with your friends and or contact me for more info.
Insurance Advice – by John Lorince
Thanks to an unusual convergence of market trends, ushered in by the pandemic and followed by other disruptive events, you may see a bigger change to the cost of your home and auto insurance than usual when it comes time to renew your policies this year.
Insurance rates are based on what an insurer thinks it will cost to make you whole in the event of a loss – whether it’s roof damage during a windstorm or a vehicle totaled during a traffic accident. As you’ve likely noticed, pretty much everything costs more than it did even a few years ago.
If you’ve shopped at Home Depot or Lowe’s lately, you’ve certainly seen that the price tags on building materials have gotten pretty expensive. Last year, the cost of building materials rose 4.7%, reflecting a particularly strong uptick in prices on things like asphalt shingles (16.2%), concrete blocks (18.5%) and drywall (20.4%).
To make matters worse, the home-building industry is facing a shortfall of more than 300,000 skilled laborers, which is driving up construction-related labor costs. Combined with the high cost of construction materials and historically low housing inventory, this has been making home claims much more expensive for insurance companies. 
Ongoing supply chain issues are driving a shortage of car parts and equipment, which were 22.3% more expensive at the end of 2022 than they were two years earlier. The overall cost of maintaining and repairing vehicles increased 18.4 % over the same timeframe – exacerbated by a growing shortage of car repair technicians.
The same issues depleted the supply of new and used cars during the COVID-19 pandemic, and inventories have not yet recovered. As a result, the average price of new cars has risen 20% since 2020, while used car prices have skyrocketed 37%.
Rising medical costs are another key factor. While the number of injuries and fatalities from car accidents has somewhat declined from its peak in 2021, the rising cost of medical care continues to drive higher claims costs. Between 2020 and 2022, the overall cost of medical care in the U.S. increased 6.8%
Keep in mind that savings come in many forms. The value of the coverage you choose today may save you more in the long run than the lowest possible premium.
Contact us to review your current coverage. We’ll help you explore opportunities for discounts that could offset higher rates when it comes time to renew.
Sources: National Association of Realtors, Federal Reserve Bank of St. Louis, Home Builders Institute, CoreLogic, Consumer Price Index, TechForce Foundation
As an insurance broker, I’ve been getting a lot of questions lately about why insurance premiums have been on the rise in the past year. It’s a complex issue, but I want to take a moment to break it down and explain some of the factors that have contributed to the increase. 
One major factor is the ongoing COVID-19 pandemic. The economic downturn caused by the pandemic has led to an increase in claims for things like business interruption and event cancellation. At the same time, many insurance companies have had to pay out large sums for COVID-19 related claims, putting a strain on their finances and leading to an overall increase in premiums.
Another factor is the increased frequency and severity of natural disasters. The past year has seen a number of major hurricanes, wildfires, and other natural disasters, which have caused significant damage and led to an increase in insurance claims. These events also put a strain on the insurance industry, leading to higher premiums.
Additionally, the insurance industry has been impacted by changes in regulations and government policies. For example, changes in the Affordable Care Act have led to an increase in healthcare costs, which in turn have led to an increase in health insurance premiums. Similarly, changes in workers’ compensation laws have led to an increase in premiums for employers.
It’s important to note that not all insurance premiums have gone up. In fact, some types of insurance, such as auto insurance, have actually gone down in the past year. However, many types of insurance have seen significant increases, and it’s likely that these trends will continue in the near future.
So what does this mean for you? If you’re shopping for insurance, it’s important to understand that you may be facing higher premiums than you have in the past. However, there are still ways to save money on your insurance. For example, you can shop around for the best rates, or you can bundle your insurance policies to get a discounted rate. Additionally, you can also take steps to mitigate your risk and lower your insurance costs, such as installing security systems or taking driver safety courses.
In conclusion, the rise in insurance premiums is a complex issue that is driven by a variety of factors. The ongoing pandemic, increased frequency and severity of natural disasters and changes in regulations and government policies are some of the main reasons why the premiums have gone up. It’s important to keep in mind that you can still save money on your insurance by shopping around, bundling your policies, and taking steps to mitigate risk.
Not all insurance agents are the same! Choosing the right one can make a big difference – in price, service, and value.
With other captive agencies, you get one company like State Farm or Allstate that sells one brand of insurance. And this is not a knock on them at all. They have a full blown marketing engine behind them with all of their TV ads. However, with an independent insurance agent like John Lorince you get intelligent choices based on the best options.
Why? Because independent insurance agencies, like Graziano Lorince, represent a number of different insurance companies, and can compare coverage and prices to find the best possible value for your individual circumstances. As independent agents, we are members of the Nordonia Hills Community, and we’re committed to doing business face-to-face and being your advocate in times of need. We also are utilizing Zoom for meetings and can bind policies over the internet.
There is a difference. To find out how our independent insurance agency can help you find the right insurance coverage, please contact Graziano Lorince today. Give us a call today at 330.748.0987
