Why have insurance premium sky rocketed?

We've all been hit hard by insurance premium increases. Why have they gone so high?

There are several factors involved, but the biggest one is inflation. When lumber prices exploded during the COVID pandemic, it's only logical that the cost of building & repairing houses also exploded. Prices have subsided slightly, but they're still higher than pre-pandemic. Inflation also hit auto insurance premiums for the same reason. The cost of car parts have also inceased sharply, so it only makes sense that insurance companies are paying more on claims than they were 3-4 years ago.

Now think about technology. A few years ago, the sideview mirror on your door was just that - a mirror. Now it's heated. It's lighted. It has sensors that warn you if you're about to veer into another car as you change lanes. That stuff isn't cheap. What used to cost $40-$50 now costs hundreds of dollars. Same thing with your bumper. Sensors tell you if you're about to back into something. Some cars now have cameras that give you 360 degree vision around your car. Don't forget about your windshield. There are sensors that dim you lights when another car approaches and start you wipers when it starts raining. Then there's the computer that runs the GPS, the audio/video and other types of information that we must have. All this means that damages that weren't claimed because they were under the deductible are now well over the deductible - even with higher deductibles. Hence, more claims.

Then there's the reality of driver distraction. Think texting, Facebook, Instagram, email, etc.  Most of us are guilty of spending way too much time on our cell phones. It's not a big deal unless we're spending some of that time behind the wheel. Distracted driving has also contributed to more claims.