Why are Minnesota Insurance Rates Increasing

Minnesota Car and Home Insurance are increasing in 2022.  Insurance rates are increasing with all Insurance Companies. This has insurance customers very frustrated because all of our other costs are have increased, everything from Gas to Groceries.

The reasons are similar to the reasons our other costs have increased. Supply and Demand and inflation.   

For car insurance, the cost of used vehicles have increased anywhere from 20% to 37%. Insurance companies are paying more to replace vehicles. This means that the cost of Insurance Claims has increased. When insurance companies pay higher claims, they are going to raise insurance rates to keep up with the increased losses. If all Minnesota Insurance Companies are raising rates on their policies, we know it is not a one insurance company issue.  It is an industry issue.  Bottom line if insurance companies are paying out more money than they are taking in, they are going to raise what they charge for their product.

Not unlike our other goods and services, if it costs more to ship our apples and oranges, the grocery store pays more for the produce, and the consumer in turn pays more for the end product.   

Minnesota Home Insurance is increasing because materials have drastically increased.  Back to the Supply and Demand again.  It can be hard to find materials for homes.  When supply is down, price goes up.  Same concept as the car insurance.  If it costs more to repair a home, the insurance company will have a higher claims expense.  If there is a higher claim expense, the insurance company is going to raise insurance rates to keep up with the higher claims expense.  The other piece of the home insurance is that it will not cost more to rebuild your home, so your dwelling coverage is going to increase.  The higher your dwelling coverage, the more expensive your insurance is.   

With the rising costs of insurance, i would recommend to get other insurance quotes.  We are doing this for our customers on their insurance policy renewal.  We will quote your insurance policy with our other 12 insurance companies.  This is the benefit of being insured with an Independent Insurance Agent. We will find you the best policy coverage at the best price.  We have access to the best insurance quotes because we have access to the best insurance companies in the market.   Get started on your insurance quote today.   (763)767-0522 or fill out the short contact form listed below.

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