[Joe 6-pack]

When you purchase a policy you are asking the insurance company to indemnify you against risk. The premiums you are charged will be based on the risk you're asking the insurer to take on. All other things being equal, if you're asking the carrier to insure a $5M home in the middle of tornado alley, the premiums are naturally going to be higher than a $150K home in the mountains of eastern Tennessee. If you're buying a policy for a 22 year old driver in a 2024 Corvette, the rates will be higher than a 45 year old in a 2014 Ford F150.

If government wants to lower insurance rates, there are things they can do like increase the infrastructure for public safety (i.e. proximity of fire hydrants to residences), upgrade building codes in hurricane/tornado prone areas, and aggressively enforce crimes against property to lower theft and vandalism rates and reduce the overall risks citizens are asking the insurance companies to take on.

That takes too much thought and effort on the part of our thick-skulled pols who think they can simply set rates by fiat from on high.

[Joe 6-pack]

Also, re: my #13, one of the main contributors to skyrocketing insurance rates in the COVID and post-COVID era are supply chain issues. Building materials and vehicle repair parts have all seen significant price hikes which of course will contribute to the costs of fixing a vehicle or a residence after a covered loss. Some of contributors to supply chain issues are also within the control of government, but they have also failed in that regard as well.