(ABC - KHQA) - It's not just grocery prices that are on the rise due to inflation; Insurance rates are going up too.
Ryan James, the owner of James Insurance Group, said an increase in the cost of used cars, along with a 4% increase on car parts, in 2021 has led insurance companies to raise their rates.
"Right now, at least 90% of auto insurance companies are raising their rates," he said.
Increasing labor costs are also contributing to the hike.
"To get quality help, auto repair shops are having to raise their salaries," James said.
The effects are also being felt in the housing market.
James said they aren't seeing a crazy increases on the insurance rates for homes, but the price and evaluation of homes have increased
This is leading to an increase in the cost of insurance premiums.
In 2017, it cost around $135 a square foot to build a home.
Today, that number has climbed to around $300 a square foot.
"Your looking at a $300,000 home in 2017 that is now going to cost roughly $600,000 to build that same home," James said.
There are ways to get ahead of the rising insurance rates and get the best deal that fits you in terms of cost and coverage.
James said the best way to do this is to not focus on just one insurance company.
"Get with a trusted independent agent who can quote multiple companies for you, and then see what is the best for you," he said.
By Cayson Frerichs
