Understanding the Rising Cost of Insurance in St. Charles County
By: Jeff Flowerree
Being in the insurance industry for the last 17 years, I’ve had countless conversations about premiums, claims, and rate increases. I always try to walk lightly when giving a peek behind the insurance curtain — it’s not always well received — but it is today’s reality across the industry.
The insurance landscape has changed tremendously over the last five years.
In the state of Missouri, auto insurance rates have increased approximately 20–25%. Homeowners insurance rates have increased 40% or more during that same time period. While those numbers are significant, understanding why they’ve increased is just as important.
Why Auto Insurance Has Increased
Auto insurance has seen drastic changes for several reasons.
First, the cost to repair vehicles has risen significantly. Today’s cars are equipped with advanced safety systems, sensors, cameras, and technology that are far more expensive to repair or replace. What used to be a simple bumper replacement can now involve recalibrating multiple safety systems.
Parts and labor costs have also increased, partly due to post-pandemic supply chain challenges and ongoing inflation. On top of that, we’ve seen:
- More accidents
- More severe accidents
- Higher medical costs
- Larger claim payouts
When the cost of claims rises, premiums inevitably follow.
Why Homeowners Insurance Has Increased Even More
Homeowners insurance has experienced even more dramatic increases, and weather plays a major role — especially here in St. Charles County.
Missouri sits in a high hail frequency region. Hail damage claims alone account for a large percentage of roof replacements. Even a modest roof replacement today can cost $10,000. Larger or more complex roofs can easily run $30,000 or more.
Because of these high repair costs, homeowners are much more likely to file a claim for roof damage than for smaller interior issues.
Over the past five years in St. Charles County, we’ve had 41 storms that produced measurable hail. To put that into perspective:
- May 2023: Reports of hail up to 3 inches in diameter
- May and July 2024: Hail over 1 inch
- May 2025: Reports ranging from 1.25 to 1.50 inches
Hail of that size is more than enough to cause significant roof damage.
The Shift to “Split Deductibles”
These repeated severe storms have also contributed to a major structural change in homeowners policies: split deductibles.
Many homeowners now have:
- An “All Perils Except Wind/Hail” deductible, which is typically a flat dollar amount such as $1,000 or $2,500.
- A separate “Wind/Hail” deductible, which is usually a percentage of the home’s insured value (commonly 1%–2%).
For example, if a home is insured for $400,000 and has a 1% wind/hail deductible, that deductible would be $4,000 for a hail claim — even if the standard deductible is $1,000 for other types of losses.
Insurance companies have implemented this structure because wind and hail claims are the most frequent and costly losses in our region. By separating those deductibles, insurers are attempting to manage storm-related risk while keeping standard deductibles lower for non-weather claims like fire or theft.
The Bigger Picture
These changes aren’t unique to one company. They reflect broader economic pressures, increased storm activity, higher construction costs, and evolving risk models across the insurance industry.
As someone who has worked in this field for nearly two decades, my goal is not simply to sell policies — it’s to educate. Insurance can feel complicated and frustrating, especially when premiums rise. But understanding what’s happening behind the scenes helps bring clarity to those conversations.
I’m always happy to educate anyone who has questions about their current insurance coverage. If you’d like a review of your auto or homeowners policy, or if you simply want help understanding what your deductibles and coverage really mean, I’m available to assist and answer any questions.
Insurance is complicated — but it doesn’t have to be confusing.