Insurance Rates In 2023

What’s going on with insurance rates in 2023? Why are they going up?

These questions are currently on a lot of our customers’ minds, so we’d like to address some important points here. Read on for a brief update on the state of insurance in 2023.

Following last year’s trend, insurance rates have remained elevated so far in 2023. The good news is that as an independent insurance agency in Southwest Missouri, we can shop the market to find the best rates available to you and your family.

Here is a quick breakdown by coverage to give you an idea of what’s happening in the insurance industry as a whole right now: 

Auto Insurance: Up 9% in 2022, Further Rise Expected in 2023

Auto insurance premiums continued their upward trajectory in 2022 due to inflation and traffic accident rates. Unfortunately, increases will likely continue throughout 2023. Auto owners in some states are already seeing increases of almost as high as 17%

Homeowners Insurance: Up 7% in 2022, Set to Increase 9% in 2023

Homes at risk of wildfires and wind or water-related disasters will continue to experience rate increases as the industry recovers from natural disasters like Hurricane Ian, where damage estimates reached as high as $65 billion. In 2023, homeowners should prepare for a 9% increase in premiums.

Homeowners may also want to increase their replacement cost value in 2023 to offset increased construction costs and inflation. Note that increasing your replacement cost will slightly increase your annual premiums, but the added coverage is well worth the cost.

Renters Insurance: No Change in 2022

Renters insurance covers only personal belongings and liability in case of an unexpected event, not the building itself, which makes it significantly cheaper than homeowners insurance. 

Everyone who rents should have renters insurance (including college students). At an average of $32 a month or $382 a year in 2023, renters insurance is a strategic and affordable way to minimize risk and loss. 

Health Insurance: Up 3.5% in 2023

Inflation didn’t significantly impact employer-sponsored health insurance premiums in 2022, due in part to policy costs being set months earlier before inflation became a real factor. 

However, in 2023, people buying insurance for themselves will pay 3.5% more than they did in 2022, while employers will pay roughly 6.5% more.

Umbrella Insurance: No change in 2022, 2023

A personal umbrella policy is a good idea if your auto and homeowner’s policies don’t fully cover your net worth, or you live a somewhat “high-risk” lifestyle with a dog (and neighbors), a trampoline, a backyard swimming pool, or a motorcycle.

Umbrella insurance averages between $150 and $300 annually for an extra $1 million in coverage. So if you fall into one of the above-mentioned categories, an umbrella policy might be a good idea for you. If you are interested in adding an umbrella insurance policy, reach us here:

Life Insurance: Down 0.5% in 2022, Remains Affordable in 2023

If there’s a silver lining in the insurance industry when it comes to premiums, it’s with life insurance. Life insurance rates remained steady for a fifth straight month in December 2022, according to the Policygenius Life Insurance Price Index, putting rates slightly cheaper (0.5%) at the end of 2022 than they were at the same time in 2021. Though rates did increase by about 1% month-over-month in February 2023, life insurance remains relatively affordable. 

If you’re young and healthy, now is a great time to look into life insurance. We make the process quick and simple. Purchase life insurance in a few minutes here:

We know these stats are, for the most part, not good news. But we wanted to take a moment to make sure that you are informed, and that you understand what is going on in the insurance industry as a whole this year. Even though rates look like they are on the rise, we still have a big advantage in the marketplace because we are an independent agency. We have access to a large number of carriers and will work to find the best available rate out there for you.

Thanks for reading.

-The Theobald Insurance Group Team

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