If your home or auto insurance premiums have jumped recently, you’re not imagining it—rising insurance rates are affecting families across Washington and beyond.
Because changes like this impact your overall financial picture, we’ve partnered with insurance expert Christopher Togawa, owner of Christopher Togawa Insurance Agency, to help explain what’s driving these increases and how to respond wisely. Our goal is to keep you informed on the trends that affect your plan and connect you with trusted professionals who can help.
What’s Behind These Rising Insurance Rates?
Christopher helped us unpack the major forces driving current rate increases—and why they’re affecting so many people, regardless of claims history.
Higher Repair and Labor Costs
Post-COVID supply chain issues, labor shortages, and rising material costs mean repairs—whether to homes or vehicles—are more expensive and take longer. Insurance companies are adjusting their rates to match the increased cost of claims.
Post-Pandemic Lifestyle Shifts
People are driving more again, but post-pandemic habits have led to more distracted driving and more accidents. At home, more time spent work, cooking, remodeling, or just living indoors means more opportunities for claims—kitchen fires, plumbing issues, and electrical damage have all increased.
Changing Weather, Changing Risk
More frequent and intense events like wildfires, flooding, and storms—yes, even here in the Pacific Northwest—are putting pressure on insurers. Rates are rising not only where disasters have happened, but anywhere insurers are re-evaluating regional risk.
The Hidden Costs of Going Electric
Electric vehicles may be better for the environment, but they’re also contributing to rising insurance costs. Repairs are more expensive due to specialized parts and labor, and EVs are often totaled with just 25–35% damage, compared to 50–60% for gas-powered cars. That means higher payouts for insurers—and higher premiums for everyone.
Even if you don’t drive one, the growing number of EVs is reshaping how insurers assess risk, which affects rates across the board.
Legal Pressures and Claim Behavior
More policyholders are turning to attorneys to settle claims, increasing the cost to insurance companies and further driving up premiums.
How to Evaluate Your Protection Plan
Christopher offered several smart, practical recommendations to help make sure your home and auto insurance coverage still fits your life today:
- Start with the purpose. Insurance isn’t meant to cover minor repairs—it’s there to protect against large, unexpected losses. Treat it like a critical part of your risk strategy, not a subscription service.
- Avoid common mistakes. Be careful not to reduce important coverage limits just to save money. Filing small claims that could be handled out of pocket may cost you more later in premium increases.
- Consider raising your deductible. If you have the emergency savings to absorb a larger out-of-pocket cost, a higher deductible can lower your premiums and help discourage small claims.
- Reduce your risk. Maintain your property proactively—trimming trees, updating older systems, installing home security—and adopt safe driving habits. These can not only protect you but may qualify you for discounts.
- Expect premiums to outpace inflation. Insurance costs are likely to continue rising faster than wages or other living costs. Planning for that now helps you avoid surprises later.
- Work with trusted professionals. Don’t evaluate coverage in a vacuum. Your financial advisor and your insurance agent should be part of the same conversation, ensuring your plan is aligned and your protection is complete.
Why This Matters to Your Financial Plan
Even if you’ve never filed a claim—or haven’t changed homes or cars—your premiums may still go up. That can feel frustrating, but it also highlights why insurance is not a one-size-fits-all decision, and why we believe your protection plan deserves a seat at the table with the rest of your financial strategy.
Here’s how this ties into the work we’re doing together:
- Insurance protects your wealth. You’ve worked hard to build what you have—your home, savings, and legacy. If a major event threatens those assets, you want the right safety net in place.
- It affects cash flow in retirement. For retirees, increases in fixed expenses—like insurance—can affect monthly income needs and long-term planning. This isn’t just a budget issue; it’s a retirement strategy issue.
- You don’t have to manage it alone. We believe in collaborative planning. That’s why we bring in experts like Christopher—to ensure you’re getting high-quality guidance from professionals who specialize in these areas.
Planning isn’t just about growing wealth—it’s about protecting it, too.
We understand that rising insurance rates can feel like one more thing out of your control. But here’s what we know to be true—clarity, strategy, and proactive planning go a long way in turning confusion into confidence.
Whether you’re double-checking your home coverage before that long-awaited overseas trip, or you’re looking to protect the growing life you’re building for your family, we’re here to help you make smart, sustainable decisions.
If you’d like to talk through how rising insurance costs fit into your financial picture—or connect with a trusted insurance professional—we’re happy to help!
Wondering if your retirement is on track? Get our Retirement Readiness Guide to find out!
Josh Whelan
CFP®, CLU®, ChFC®
Partner, Financial Advisor
About the Author
Josh sees his profession as a calling, not just a career. His motive for pursing financial planning was very personal. While working on a degree in marriage and family counseling, Josh’s father was diagnosed with multiple sclerosis. Josh decided then and there to change career paths to help his family prepare for an uncertain financial future. Financial planning became his path to serving others.
The “Alterra” name was coined by joining the Latin roots “alter”, the origin of the word “altruism” with “terra” meaning earth or land. This name reflects the company philosophy of “clients before profits” and providing firmly grounded advice.