The economic impact of inflation is being felt on all fronts in America. You and your family are likely experiencing its effects in your day-to-day life. Essentials like the cost of gas and food are typically the first places where people first notice inflation, which means the bigger picture doesn’t hit home until disaster strikes. You may have other concerns about inflation’s reach, as there are some ways it may affect your insurance.
Rising Cost in Building Materials
A large part of most Arkansans’ insurance needs involves their home. Comprehensive coverage of your home is a must-have at all times. Should the need for repairs arise, be mindful that 2022 saw an increase in the cost of building materials. Inflation has impacted the price of materials like softwood lumber, steel products, and ready-mix concrete. Naturally, this will translate into additional costs in time and labor for construction contractors.
Growing Auto Repair Expenses
Your car gets you to and from work and out and about the town, so it’s important to stay on top of maintenance and repairs. Unfortunately, accidents do occur, and you need to be aware of the price increases to motor vehicle parts and equipment. Over the last year, that cost has increased by nearly 15 percent, which is the largest year-over-year increase since 1974. As always, safe driving is the best way to save money.
Higher New Vehicle Costs
Repairs to your current vehicle aren’t the only place where inflation is a factor in higher costs. Replacing your car or another driver’s will cost you more this year. 2022 saw the average cost of a new vehicle go up over 8 percent from the previous year, and they aren’t expected to drop anytime soon. So, if you have the choice between maintenance and a purchase, you may want to choose new parts over a new car.
Where Your Insurance Factors Into Inflation
Understanding the different prices for these goods will give you a much better idea of how your insurance is working for you should you need it. During times of inflation, scheduling a review of all your insurance coverage is helpful. A review can easily identify gaps in your coverage created by inflation. Increasing your coverage allows you to be sure that rising costs wouldn’t affect you or your family during a time of need.
Make sure that the inflated cost of replacing your home is covered under your homeowners insurance policy. For a complimentary homeowners insurance review with Farm Bureau Insurance, find an agent near you.