Insurance Premiums Are Rising


Insurance premiums have increased across the United States, not just in Oklahoma. Here’s a closer look at what’s driving these increases.

Personal Auto Insurance

  • Increase: Approximately 38.7% from January 2020 to December 2023.*
  • Context: This period includes the pre-COVID era up to the present day.

Homeowners Insurance

  • Trend: Homeowners premiums have also significantly increased during the same period.

Factors Influencing Rising Premiums

It’s not solely the insurance companies at fault. Several economic factors contribute to these rising costs:

  • Inflation: Overall inflation in the economy is up about 19.6% from January 2020 to December 2023.*
  • Increased Costs for Claims: Many of the materials and labor costs that insurers cover have surged in price.

Breakdown of Cost Increases (January 2020 – December 2023) *

  • Concrete: Up 28.9%
  • Asphalt Shingles: Up 40.2%
  • Lumber/Plywood: Up 14.4%
  • Rubber/Plastics: Up 31.9%
  • Steel Products: Up 65.1%
  • Gypsum/Drywall: Up 42.9%
  • Copper: Up 37.2%
  • Labor Costs: Up 34%

Impact on Insurance Rates

When insurers face higher costs for materials and labor in claim settlements, these expenses are reflected in their premiums. This is why the rising costs of these essential items lead to higher insurance premiums.

*Source: US Bureau of Labor Statistics, as cited by Dr. Robert P. Hartwig, PhD, CPCU, Clinical Associate Professor of Finance, Risk Management and Insurance, Darla Moore School of Business, University of South Carolina, during the 2024 Property & Casualty Markets Symposium (3/11/2024) hosted by the New Hampshire Insurance Department View Presentation