09 Mar Disasters and Insurance Rates Food & Wine and Superbowl
Welcome to the Newsletter
Rana Law Group Newsletter
In this issue:
- Disasters and Increasing Insurance Rates
- Food & Wine Fest + Superbowl Sunday
Disasters and Increasing Insurance Rates
I know many of my clients are concerned about their insurance rates increasing after making a claim. Unfortunately, the cost of auto and home insurance is mainly rising due to the catastrophic fires, floods and other natural disasters from the past few years. Additionally, high prices from inflation for vehicles, parts and construction materials resulted in everyone’s insurance rates rising regardless of claims history. My insurance rates went up substantially and I had no claims reported. When I pressed our agent about the cost increase, this was the response (my comments in red):
We, in the insurance industry, continue to be in an incredible challenging environment (maintaining the incredibly high profits to which we are accustomed). We’ve seen a mix of various unique challenges, and catastrophe costs are at historically high levels. Inflation has been rising at an unprecedented rate. Supply chain bottlenecks, labor shortages, and pandemic-fueled demand all play a role. Over the past two years, auto accidents and injuries have climbed in frequency (this may actually be true – it seems people have forgotten how to drive but, make no mistake, the “costs” of accidents and injuries are already built into their profit model – this is just an easy scapegoat). Housing prices are increasing and inventory supply and demand, lumber prices, and costs of labor are contributing to the increase. These issues increase the costs of claims which, quite frankly, drive down profit (Never mess with the insurance industry’s profits, otherwise, we ALL make up for it). The harsh reality is that insurance companies are experiencing record-breaking underwriting losses on auto and home severity which, unfortunately, have nothing to do with your personal driver rating or claims experience.
Besides what I’ve already mentioned, some other culprits behind the weak results the insurance companies are experiencing include:
- it is taking longer to get auto parts;
- it is taking longer to get a time slot in a body shop and that is putting pressure on the length of time it takes to make repairs;
- the average rental days for non-drivable repairs are longer than normal;
- body shop costs, including labor, are higher than in the past;
- comprehensive claims from catalytic converter thefts are on the rise;
- insurance companies were hit with historically higher liability losses in 2021 and 2022 than projected;
- supply chain issues for home repairs and reconstruction;
- and winter storms, hurricanes, etc., led to larger-than-expected home catastrophe losses.
While I have no love lost for insurance companies (they are still making large profits while paying top executives astronomical salaries), I included this information to prepare my readers for what is likely going to be an increase in their own premiums when up for renewal. Start tucking away a little extra money for your insurance increases, just in case!
Food & Wine Festival & Superbowl Sunday
I had an exciting weekend last month when the Schnucks Food & Wine festival coincided with Superbowl Sunday. The last time we attended the festival was just before the Covid shutdown in 2020. We had such a great time sampling everything back then that we vowed to return every year, not knowing the virus was about to shut everything down and the festival would not be held again until 2023. Thankfully, it returned this year and was just as fun as we previously remembered. The proceeds go to charity on behalf of Schnucks, which brings in vendors so customers can sample wine, beer and food sold in their stores. I highly recommend checking it out next year!
The next day it was time to eat and drink some more for Superbowl. We are really getting spoiled having the Chiefs play in 3 out of the past 4 years! Rihanna pulled off a great halftime show which is always one of my favorite parts of the evening. The real star was the party food, including nachos, buffalo chicken dip, meatballs, Chex-rice Krispies, smoked cheese dip, fruit dip and much more. All I can say is thank goodness we do not have a Superbowl type event every month or all the progress from the intermittent fasting would be wiped away in no time!
From time to time, clients call and ask which type of cases we handle. My practice is built on referrals from satisfied clients. I know that if I work hard and do a good job for my clients, they will tell their friends about me. The best compliment from a former client is that client entrusting me with the potential case of their friends and family. Our office specializes in the following cases:
- Personal Injury (auto collisions, trucking, motorcycle, slip and fall)
- Work Injuries
- Traffic tickets and DUI/DWI
If you know someone that meets these criteria, please have them call my office. If someone does not quite fit the above criteria, please still have the prospective referral give me a call as I can usually help them find the right attorney via a referral.