08/27/2026
“Why did my auto insurance go up?”
“Why did my homeowners insurance go up?”
I hear these questions almost every day — and they’re fair questions. But there’s something we sometimes forget when talking about insurance:
Insurance doesn’t operate in a bubble. Think about what you’re paying today for groceries, gasoline, electricity, dining out, clothing, tires, batteries, an oil change, a haircut, veterinary care — you name it. Nearly everything costs more than it did just a few years ago.
We tend to notice insurance increases more because we see that big six-month or annual premium all at once. Meanwhile, the extra dollar here, $5 there, and $20 somewhere else gets absorbed into everyday life.
Insurance companies are dealing with those same increased costs when claims happen.
AUTO INSURANCE
I also hear: “But my car is another year older. Shouldn’t my insurance be cheaper?” Not necessarily. Your vehicle may be getting older, but the cost to repair it, replace parts, pay technicians, rent a replacement vehicle, provide medical care after an accident, and settle liability claims certainly isn’t getting cheaper.
A body shop doesn’t lower its hourly labor rate because your vehicle is 10 years old.
A hospital doesn’t discount the medical bill because the person injured was hit by a 1972 Monte Carlo instead of a 2026 Range Rover.
And an attorney representing someone seriously injured in an accident doesn’t say, “Well, the vehicle that hit my client was pretty old, so we’ll take a smaller settlement.”
The age and value of your vehicle are certainly factors in portions of your coverage, but they’re only one piece of a much bigger equation.
HOMEOWNERS INSURANCE
The same principle applies to your home. Been to a lumberyard or hardware store lately? Building materials, roofing, siding, windows, skilled labor, equipment, and contractor costs have all increased substantially. When a storm damages a home, the insurance company is paying today’s cost to repair it — not what those materials and labor cost 10 or 20 years ago.
That doesn’t make premium increases any more enjoyable. Nobody likes paying more — including me.
But, there is a reason behind much of what we’re seeing across the insurance industry. And this is exactly why having a local agent who will actually review your coverage, explain your premium, look for available discounts, and make sure you’re properly protected matters more than ever.
Don’t just look at the number on the renewal and assume there’s nothing you can do.
Give my office a call. Let’s review it together.
We may not always be able to control the cost of insurance — but we can make darn sure you understand what you’re paying for and that your insurance is working for you when you need it most.
Keith Brack - COUNTRY Financial
815.465.6020
