For several years now, the Left has argued that we should allow people to steal, riot, loot, and thieve because they really need whatever it is they’re stealing, and insurance will take care of it.
Several of us warned that this would end badly. Now, businesses are leaving high crime areas in droves, and insurance costs are skyrocketing.
Insurance is the new “luxury” item:
Many Americans are no longer able to buy cars because they cannot afford to insure them.
The cost of auto insurance has risen by a massive 22% over the last year.
This is the biggest one year jump in insurance premiums since the 1970s’.… pic.twitter.com/jpJnl0vNun
— The Kobeissi Letter (@KobeissiLetter) April 14, 2024
While this focuses on auto insurance, homeowners insurance is also going up — a 50% increase between 2019 and 2023.
Along with high mortgage rates and record home prices, soaring insurance rates — up around 20% over the past two years — are putting pressure on the cost of homeownership.
They’re projected to rise another 6% in 2024. https://t.co/FZqKJQMP19
— Axios (@axios) April 15, 2024
While the rising cost of auto insurance is pushing up the official inflation rate, there’s a stealth insurance cost that isn’t showing up in the Consumer Price Index: homeowners insurance.
Why it matters: Along with high mortgage rates and record home prices, soaring insurance rates are just one more thing putting pressure on the cost of homeownership.
State of play: Insurance costs are up around 20% over the past two years and are projected to rise another 6% in 2024, according to an estimate from Insurify, a comparison site.
- Pull back further, and the numbers are even more astonishing. The cost of insuring the average home rose to $1,905 in 2023 from $1,272 in 2019 — a 50% increase — according to data cited in a recent note from Bloomberg Intelligence.
The big picture: This cost isn’t showing up in the official inflation data.
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Focus on that last line again: The cost isn’t showing up in official inflation data.
Can’t imagine why.
Insurance premiums for just about everything have skyrocketed since 2020.
If you factor in insurance and taxes, the average monthly home payment is above $3000/month.
Insurance is quickly becoming a luxury.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) April 14, 2024
And the lower- and middle-income families are hardest hit.
Between health, homeowners and auto insurance we are paying over 33,000 per year. And we have never filed claims on our homeowners insurance and we both have safe driver status.
— Freedom First USA (@Tomfreeusa) April 14, 2024
Everyone is suffering.
That’s Bidenomics!
— RomeoDoggyDog (@RomeoDoggyDogg) April 14, 2024
Yes it is.
Build back better, or something.
Another factor in rising vehicle insurance costs is rising vehicle maintenance and repair costs — up 33% over the last 4 years.https://t.co/2RZ8bqwsxN
— David Sommers (@dgsommersmkts) April 14, 2024
So let’s force everyone into far more expensive electric vehicles! That’ll save money.
Meanwhile, the Fed’s preferred inflation metric spiked to above 8%
March CPI is 3.5%, the highest since September 2023.
Core CPI is 3.8%, beating expectations for four months.
The 3-month annualized core CPI is 4.5%.
Inflation has not gone away.https://t.co/TnkRsXCU5y
— Global Markets Investor (@GlobalMktObserv) April 14, 2024
Nope, it has not.
But it was ‘transitory’, we were told.
We have an 11 year old pickup and a 6 year old suv. Our car insurance rates have exploded. We make do because we don’t have a car payment. Hope these vehicles hold out for years to come! https://t.co/A45PioiYhB
— Anne (@docboogie) April 14, 2024
So do we.
Appropriate reading for today as my son’s truck insurance rose 36% since 2023! Just got his renewal notice & has had 0 accidents, tickets, or claims. Yet his truck now costs him almost $2000 a year for insurance! https://t.co/ZorNgz6vQn
— Rod Stayner 🇺🇸 (@RodStayner) April 15, 2024
He’s paying for the less safe drivers and the claims caused by accidents, thefts, etc.
Mere property crimes, right Cook County politicians ?
Next they’ll accuse the insurance companies of racism and tell Raoul to sue them. https://t.co/tdEj2ShJA8— Tim L (@arbtim) April 14, 2024
When insurance companies stop covering certain areas, or certain vehicles, or certain dwellings, the Left will whine and sue and scream racism. And the cycle will repeat.
