Auto and homeowners’ insurance rates are on the rise and sadly, EVERY carrier is taking increases at this time. I’ve provided an explanation for the increases below.
RISING CAR COSTS
Cars are becoming more expensive to repair, in part because replacement parts are becoming difficult to find due to supply shortages. The lack of availability for used and new cars has also increased the typical market value for many cars, which means insurance companies are paying out higher amounts for claims across the board.
Severe storms and hurricanes cause a rise in car insurance claims from cars that are flooded, damaged, or destroyed.
RISING CONSTRUCTION COSTS
With the rise in construction costs, many carriers have increased your dwelling coverage to offset the increase, resulting in a higher premium to the homeowner.
And of course, the number one reason, inflation.
How can I save money or soften the blow???
COMPARE AUTO AND HOMEOWNERS INSURANCE QUOTES
Make sure you are matching coverage’s to your existing policy! You do not want to find out at the time of a claim that you lost coverage for a lower rate.
COMBINE YOUR HOME AND AUTO INSURANCE
When reviewing rates, always review the total package (i.e. home and auto). Often, carriers will have a better rate on one product opposed to the other. I suggest reviewing the total package to determine the best scenario. Carriers will also provide 15-25% discount per product line (i.e. 15% discount on the auto and 25% on the home) for combining.
ADJUST YOUR COVERAGE
Consider a higher deductible. Most people now have a $500 deductible on the auto and $1,000 deductible on the home. Ask to have your home’s replacement cost recalculated. Each year carriers increase the dwelling coverage to protect against inflation. This year the increases to the dwelling coverage have been significant.
LOOK FOR DISCOUNTS
Almost all auto insurance companies will provide a discount for allowing the carrier to track your driving habits. Now you can download an app on your phone. The app will track things like hard stopping, accelerating too quickly, and speeding.
Consider switching to usage-based coverage. Many auto carriers now offer plans based on the miles driven.
Many carriers offer discounts for paying in full, some as high as 18%! Carriers also provide discounts for multiple vehicles and multiple policies. If your policies are split among multiple carriers, it may be time to look at combining them all with one.