The big question many people are asking right now is “Why did my car insurance rates increase?” I’m here to help you understand what is going on. Insurance carriers across the industry are currently increasing rates. That started early in 2022 and we expect to continue to see this trend through the rest of 2022. There are a variety of reasons for this, such as:
- Labor shortages
- Continuing effects of the pandemic
- Miles driven nationally has climbed back to pre-pandemic levels, including significant increases in traffic accidents and fatalities
The next big question: “How do these issues affect insurance rates?”
To answer this question, inflation is affecting the entire economy. In auto insurance specifically, supply chain issues have impacted the cost of both new and used cars. Fewer new cars are being produced right now as certain parts have become difficult for manufactures to acquire. The scarcity in new cars has driven the cost of used cars up almost 40%.
Supply chain and labor shortage difficulties are also affecting car parts used for repairs after an accident. In general, repairs are taking a lot longer and costing a lot more.
The final question: “How can I lower my insurance rates?”
Let’s chat about your options.
- We can look at changing your deductibles. Did you know that a higher deductible will lower the cost of your premium?
- Do you have your auto and your home insured through the same company? If not, let’s look at combining your policies. Combining your auto and home policies with one company could save you up to 20%.
- Many of our companies offer safe driving programs that are app based. Adding this program to your policy could save you up to 30%, as long as you have good driving habits.
Give us a call today! We’d love to review your policy and make sure you are getting the most value for your insurance dollar.