For millions of Americans and especially small business owners the rising cost of insurance has become an urgent and frustrating challenge. While insurance is meant to provide peace of mind, the steep climb in premiums, deductibles, and out-of-pocket costs is creating more stress than security.
According to recent surveys, a staggering 68% of small business owners listed rising premiums as their top concern in 2025. This isn’t surprising when you consider the financial burden placed on employers trying to offer benefits and stay competitive. With inflation affecting everything from materials to labor, adding skyrocketing insurance premiums only increases the pressure on small businesses trying to survive.
But it's not just business owners feeling the pinch. Even individuals who are insured are beginning to question the value of their policies. In the same set of studies, nearly half of Americans reported difficulty affording monthly premiums, and almost three-quarters said they worry about unexpected medical costs. These fears are well-founded. Surprise bills from out-of-network providers or denied claims can lead to financial strain even for those with decent coverage.
What’s fueling the surge? A mix of factors, including rising healthcare costs, increased climate-related claims, inflation, and provider consolidation, are all contributing to insurance companies raising rates. Moody’s reported that medical inflation and catastrophic loss events are likely to push premiums even higher through 2026.
As costs rise, so does confusion. People are having to make tough choices: choosing higher deductibles just to lower monthly premiums or forgoing coverage altogether. This can lead to underinsurance or lapses in protection, leaving families and businesses exposed to catastrophic risk.
So what’s the solution?
For starters, working with an independent insurance agent can help. Agents have access to multiple carriers and can tailor a plan to your needs and budget. They also understand the fine print helping you avoid costly gaps or overpriced policies.
It’s also important to reassess your coverage annually. With conditions changing rapidly, a policy that worked in 2023 might not be right in 2025.
Bottom line: Rising costs are a reality, but you don’t have to face them alone. Understanding your options, asking the right questions, and having a trusted advisor can make all the difference.
We offer all types of Personal Insurance coverages to our clients in California including Auto Insurance, Homeowners Insurance, Individual Life Insurance, Individual Health Insurance, and Motorcycle Insurance.
Give one of our agents a call to save money on your Business Insurance. Some of our Commercial insurance coverages include Business Owners Policy (BOP), General Liability, Bonds, Group Health Insurance, and Commercial Property.