For the same reason everything is–inflation. Inflation of home materials and car parts, plus labor shortages, which create manufacturing delays, are all a ripple effect leading to increases in insurance premiums.
Think about it: if it costs more to make and deliver your car parts, your insurance has to reflect that increase for replacement cost so that if you have an accident, you’ll be covered. The same with your home. Home insurance premiums are going up everywhere due to the increased cost of labor and construction materials thanks to supply chain issues and record-high inflation that started in 2020.
Other rate factors include:
Natural disasters-floods, tornadoes, wildfires
Post pandemic travel increase-more people on the road
Supply chain bottlenecks
Distracted driving
Increased theft levels
What can you do?
Call your insurance provider to make sure you have the correct coverage and ask if there are any discounts you might qualify for. In some circumstances, discounts and/or bundling can help off-set these rate increases.
For additional information:
https://www.farmers.com/learn/insurance-questions/why-did-my-car-insurance-rates-change/