This is a question we are asked almost daily. It’s a hard market right now and trust me…we as agents aren’t exempt. My own premium jumped $500 a year without any claims, tickets or accidents. So we get it.

Lloyds of London is credited with the concept of “money from many to pay for the few” and there are many factors affecting how much money from the many it will take to cover those losses. I’ll try not to bore with all the statistical data (I am a data nerd by nature – haha) but give the highlights of why we are all paying more for our insurance.

1. Extreme weather has wreaked havoc on the insurance industry. In 2017, the losses for the California wildfires and Montecito mudslide were $13 BILLION dollars. So far this year, the Carr and Mendocino fires have already racked up $845 million in claims.

2. Newer cars and rising repair costs are expensive. When I was a kid, if you dinged your bumper you only had to replace the bumper. These days, chances are that bumper has a camera and sensors. The technology that come in cars are great but in the event of even a small accident much more to repair.

3. Drivers are much more distracted behind the wheel these days. The number of accidents filed each year is on the rise. According to a local attorney website, distracted driving is the leading cause of auto accidents. Now see #2 above.

4. Due to rising medical costs, bodily injury claims are paying out 45% more than they did in 2007. According to the NAIC (National Association for Insurance Commissioners) the average cost of a bodily injury claim in 2016 was $16,110.

5. There are more people on the road driving. The more people, the more potential for an accident.