The year 2023 has brought many challenges, and like most people, you’ve noticed that your wallet is feeling a bit lighter. One area where many are feeling the pinch is the rising costs of home and auto insurance premiums. This blog post will explore factors driving these increases and offer actionable tips to mitigate the impact.
Factors Contributing to the Rise in Insurance Rates
Increased Number of Natural Disasters
Climate change is causing an increase in the number and severity of natural disasters such as hurricanes, floods, and wildfires. Insurance companies pay large sums for claims related to these events, and the costs often trickle down to the consumer through higher premiums.
Technological Advancements in Cars
Modern vehicles have advanced features such as sensors, cameras, and other electronic components. While these features improve safety and performance, they make repairs more costly. Insurance companies adjust their rates accordingly to cover these additional costs.
Inflation
The overall economic environment impacts the insurance industry as well. Inflation affects the cost of labor and materials needed for home and car repairs, again resulting in higher premiums. The cost of building materials rose 5% compared to the exact material costs in 2021. In addition, a labor shortage within the construction and auto repair industries has caused wage wars among companies, thus increasing labor costs.
Increased Healthcare Costs
Healthcare costs and insurance payouts for medical claims continue to rise. Between 2020 and 2022, the average cost of healthcare rose 7 percent.
Higher Rates of Accidents
An uptick in distracted driving due to smartphone use and other factors has contributed to more frequent and severe accidents, leading to higher auto insurance premiums.
What Can You Do?
Now that we’ve discussed the why let’s focus on what you can do to minimize the impact on your wallet.
Bundle Your Insurance
Many of our carriers offer discounts if you bundle home and auto insurance. We’d be happy to share with you the cost savings – and include your RV, Boat, and Motorcycle in that quote if you have any of these vehicles or vessels.
Avail of Discounts
Are you a safe driver? Are you a senior citizen or a student with good grades? Many companies offer discounts based on your profile or driving habits. Make sure you’re not leaving any deals on the table.
Increase Your Deductible
You can lower your premium by agreeing to pay a higher deductible in case of a claim. However, make sure you have enough savings to cover the increased deductible.
Make Safety Upgrades
Installing security systems, smoke alarms, or impact-resistant roofing can lead to discounts for homes. Car safety features such as anti-lock brakes, and anti-theft devices can also reduce premiums.
Talk to Us
Our agents are a treasure trove of information and advice. They can help you navigate the complexities of your policy, find discounts, and tailor coverage to fit your needs. If you haven’t done so already, schedule a time to sit down and discuss your options.
Conclusion
While the rising cost of home and auto insurance in 2023 is challenging, understanding the factors at play can empower you to take control. Taking proactive steps can mitigate the financial impact and ensure you’re adequately covered for the uncertainties ahead.
“We shop insurance with more than 10 insurance companies to try and find our customers the best coverage and price we can. Not all coverage is the same, so we recommend that consumers should be cautious when buying a policy just because its cheaper. Ultimately, you don’t want any surprises should you have a claim.” — Jeff Novak, President, Advanced Designs Insurance Inc.
Secure Peace of Mind on Your Insurance Rates
There’s no better time to review your existing policies and explore your options in this ever-changing landscape of rising insurance costs. Don’t go it alone when it comes to understanding the intricacies of insurance. Reach out to our experts for a comprehensive review of your insurance needs.
We specialize in finding you the best rates without compromising the coverage you need.
By engaging with professionals who have your best interests at heart, you’re taking a decisive step toward financial stability and peace of mind. Don’t wait for another rate hike to take you by surprise. Contact our Akron or Wadsworth office to set the foundation for a secure tomorrow.
