Why Are Insurance Premiums Going Up?

If you’ve noticed your insurance premiums rising lately, you’re not alone. Whether it’s auto, home, or business coverage, many New Jersey residents and business owners are seeing increases across the board. These changes aren’t random — they reflect larger economic and environmental trends that affect the entire insurance industry.

At BIS Improved Insurance Agency in Morris Plains, NJ, we believe in helping our clients understand why rates change and how to keep their coverage affordable. Here’s what’s driving higher premiums today:

1. Higher Repair and Replacement Costs

Even though inflation has slowed, the costs of materials and repairs remain significantly elevated.

• Auto repairs are more expensive than ever. With newer vehicles featuring advanced technology and sensors, repair costs have jumped over 40% since 2019.

• Home repair materials remain costly. Prices for lumber, roofing, and other building supplies are still well above pre-pandemic levels. These higher expenses mean insurance carriers must increase coverage limits to ensure full replacement value — which can raise your premium.

2. Rising Labor Costs

The U.S. is facing a skilled labor shortage, and that impacts both the auto and construction industries.

• The auto industry needs about 76,000 service technicians each year, but only 39,000 graduates are entering the field. This shortfall leads to longer repair times and higher hourly labor costs.

• In construction, the industry is short over 248,000 trade workers, which means higher wages and more expensive repair bills when property claims occur.

When the cost to repair vehicles and homes rises, insurance companies must adjust premiums to keep up.

3. More Frequent and Costly Claims

The number of claims — and the severity of them — has also climbed in recent years.

• Riskier driving habits have increased since the pandemic, with more speeding, distracted driving, and DUIs leading to higher accident rates and claim payouts.

• Severe weather events have surged. From 2020–2024, the U.S. averaged 23 billion-dollar weather disasters each year — a 75% increase from the previous decade. Storms, floods, and wind damage are hitting more homes and vehicles than ever before.

What You Can Do

Even though rate increases are industry-wide, there are ways to keep costs manageable:

✅ Bundle your policies — Combine your home, auto, or business insurance to save.
✅ Review your coverage annually — We’ll make sure you’re not paying for more than you need.
✅ Ask about discounts — Safe driver, home safety devices, loyalty, and claim-free discounts can make a difference.

Let’s Review Your Policies Together

At BIS Improved Insurance Agency, we’re proud to serve individuals and businesses throughout Morris County and Northern New Jersey. Our independent agents work with multiple top-rated carriers to find you the best coverage options — without the confusion or high-pressure sales.

If your premiums have gone up, don’t panic — let’s take a look together.
📞 Call us today at (973) 683-1000 or visit bisrm.com to request a free coverage review.