Home Insurance Car insurance is up almost 20%. How you can save money.

Car insurance is up almost 20%. How you can save money.

by Cedric Guzman

Car insurance prices have seen a significant increase this year, with August’s prices up almost 20% compared to the same time last year. Many individuals, like flight attendant Jen Collier, are experiencing premium hikes, with her premium set to increase from $80 to $95 next month. This rise in prices can be attributed to several factors, including supply chain issues and adverse weather conditions.

Repair costs play a major role in the increase of car insurance prices. Pat Schaefer, a representative from Gregory & Appel, explains that the expense of replacing modern features like sensors in bumpers and backup cameras has driven up the overall repair costs. As a result, insurance companies need to compensate for these higher expenses by increasing premiums.

Furthermore, supply chain disruptions have also impacted the availability of certain car parts, leading to delays in repairs and higher costs for insurance providers. With many motor companies still grappling with supply chain issues, the availability of replacement parts becomes a challenge, driving up prices.

Weather-related factors also contribute to the rise in car insurance prices. Natural disasters such as floods, hurricanes, and hailstorms in the Midwest have caused extensive damage to vehicles, resulting in a higher number of claims. Insurance companies have to account for the increased risk and financial burden caused by these weather events, leading to higher premiums for policyholders.

In order to mitigate the impact of these rising prices, it is advisable for individuals to shop around for insurance policies. By obtaining quotes from different companies, policyholders can compare prices and find the most affordable option. In this process, it is important to inquire about potential discounts that companies may offer. These discounts can be based on factors such as occupation, completion of an online defensive driving course, or paying the full premium upfront.

There may also be additional discounts available through employers, so it is worth exploring these options as well. It is crucial to ensure that personal information, such as ZIP codes or changes in household composition, is kept up to date as these factors can affect insurance prices.

Pat Schaefer suggests aiming for a premium that is around 3-5% of what was paid the previous year, considering it a victory in terms of cost reduction. Another potential way to save money on car insurance is through driving telematics. Some companies offer discounts based on the data collected by these telematics devices, which track information like speed and braking behavior.

When choosing an insurance provider, it is important to consider their financial stability and customer satisfaction. The National Association of Insurance Commissioners provides resources for consumers to research insurance companies’ finances and complaint records. It is advisable to look for companies with consistent financial performance and a low number of complaints, avoiding those with sudden jumps or drops in sales accompanied by an increase in complaints.

Ultimately, while car insurance prices have increased due to factors such as repair costs, supply chain issues, and adverse weather conditions, policyholders can still take proactive steps to find the best coverage at the most reasonable rates. By shopping around, staying informed about potential discounts, and choosing reliable insurance providers, individuals can navigate the current market trends and find suitable car insurance options.

related posts