How 10,000 People a Month Is Affecting Insurance Prices

According to an article published by the Denver Post, about 8000 to 10,000 people are moving to metro Denver each month. People have discovered our hidden secret of a great city, our beautiful mountains and our great people and culture. There are unintended consequences to this, such as more traffic, soaring housing and rent prices and property and casualty rising insurance prices.

A lot of people have been opening up there renewals lately and have noticed that there insurance has gone up. Some have noticed up to a 25 percent increase in their auto insurance and a substantial increase on their home insurance. Now the question is why?

There is a very simple answer to this. The more people in one area, the more traffic and more car accidents. In insurance terms, this means more losses for the insurance companies. Especially the Casualty side of it. (Auto and commercial insurance).Like I mentioned earlier, some have seen a 25 percent increase..

The big factor in why home insurance has gone up, is due to property values shooting through the roof. This has not only been for regular homeowners, but for condo associations, apartment complex’s and some commercial properties. A home that was $150,000 in 2010 is now selling for 225,000. Its going to cost more to insure.

Overall, I hope I have given you a better understanding of how a growth in population will affect you auto, home and commercial insurance prices. At the end of the day, the insurance company passes its cost down to the consumer.

Advertisements

About Mark A. Schneider
Owner of Denvers Insurance and Close Contact Security Services.

Comments are closed.

%d bloggers like this: