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Simply put, insurance rate increases in Arizona are not about you. The increases are coming and will continue because of:

  • Population growth and increased accidents
  • Inflation
  • Insurance companies losing money

In the hustle and bustle of daily life, one question consistently echoes among Arizonians: “Why is my insurance going up?” It’s a query that often breeds frustration and confusion, leading many to question their own actions. However, the truth is more straightforward yet deeply intertwined with various factors beyond individual control.

As providers of protection, we understand the inclination to seek answers and vent frustrations about escalating premiums. Yet, as your trusted advisors, we urge you to embrace a perspective rooted in understanding rather than resentment. This understanding will help you prepare for the increases.

The landscape of insurance in Arizona has experienced significant shifts in recent years, primarily driven by a surge in population. Like streams converging into a mighty river, this influx of new residents has swelled our communities, transforming our roads into bustling thoroughfares teeming with traffic. With increased traffic comes an inevitable rise in auto accidents, a reality that resonates through insurance companies statewide. So, your auto insurance increase is less about your driving record and more about the environment in which you drive – the very essence of Arizona’s burgeoning populace.

However, this surge in accidents merely scratches the surface of a deeper current. Inflation, that relentless force shaping economic landscapes, has cast its shadow over the realm of insurance. The cost of making insureds whole in the event of a claim has swelled. It’s the silent tide that erodes the shores of affordability, reshaping insurance rates with each passing wave. Inflation has and is wreaking havoc on what you pay for insurance.

Yet, perhaps the most sobering revelation lies in the balance sheets of insurance giants. Like ships navigating treacherous waters, they have weathered a tempestuous storm marked by staggering losses. Even State Farm, an emblem of resilience, faced a record underwriting loss of $13.2 billion in 2022, a testament to the tumultuous seas they navigated. And they are not alone. Almost every insurance company in Arizona has experienced the relentless current of financial strain.

In the face of such upheaval, it is understandable to feel adrift, buffeted by forces beyond our control. Yet, in the midst of uncertainty, there lies an anchor of wisdom: preparation. Every Arizonian, regardless of insurance company, must reconcile with the undeniable truth that insurance costs will rise, cresting upon the waves of economic tumult. Thus, let us prepare not only our minds but also our monthly cash flow, fortifying ourselves against the rising tide with foresight and prudence.

So, as you navigate the currents of insurance premiums, remember this: it’s not a reflection of your actions but rather the confluence of factors beyond your purview. Embrace understanding over indignation, for in the depths of comprehension lies the key to weathering the storm.

In summary, your insurance rate increase is not about you but about things in your environment that you cannot control:

  • Population growth and increased accidents
  • Inflation
  • Insurance companies losing money

To learn more about Stewardship Insurance and how we protect our clients from price increases at renewal, visit the Renewal Protection Plan page here.