Why are Rates Climbing?
By Amy Streifel
There are many shortcuts in life. We use them everyday in different aspects, but mostly to gain something. You can gain time when you take a shortcut on a road. You can gain quantity by adding broth to make more soup. (Thanks mom). I look for shortcuts all the time. In the grocery store, I buy a different brand as a money shortcut. So naturally, I look for shortcuts on my insurance. Are there any? Sure, but is it really a shortcut in the long run? In my experience, it never pays to skimp on your insurance. I’d like to make a shoutout to my kids. Without them, I would never have any examples to share with our customers. Case in point, recently I saw the rate increase on my own auto insurance and thought I would drop some coverage as a way to save money. A few weeks later, my lovely daughter, in an attempt to save a kitten from getting run over, swerved and hit another vehicle. The joke was on me. I could not put in a claim because I dropped coverages as a shortcut to save money. But at least that kitten lived another day. As an independent agent, we work with a lot different carriers and are seeing the changes across the board with our different policies. We are seeing anywhere from 9-20% as a normal average increase. What is driving the rate increases? The cost to rebuild homes is up dramatically due to the rising cost of materials and labor. Carriers simply can’t survive paying these higher prices without charging more themselves. The cost of home repairs is not the only thing increasing. The cost to repair your car is up 20%! This is due to the rising cost of auto parts and labor to fix cars. In addition, vehicle parts now include more technology features, which are harder and more expensive to repair.
So, what can we do? The good news in all this is there definitely are things we can do to offset the increasing prices of insurance. Almost every insurance company has discounts. You can get discounts such as good students, defensive driving course discounts, paperless discounts, safe driving discounts and more. Another big way you can save money is to increase your deductible. I have seen people save hundreds of dollars just by increasing a home or auto deductible.
Here are some more ways to save:
Þ Maintain a good driving record. Those claims and tickets affect your premium and can even limit which companies will accept your insurance.
Þ Explore payments options-there are discounts for paying in full
Þ Improve your credit score-your score has an impact on your premium
Þ Bundle your policies-another way to get a discount
Þ Learn how to save with teen drivers-if they get a good grades, you get is discount
Þ Participate in low-mileage driving programs
Þ Compare auto insurance quotes. At Nuline we are always watching for the best rates, but if you are unsure, just ask! We have several carriers and are happy to check them for you!
Þ The types of vehicles you drive are more or less expensive depending on the type and what safety features it has. It’s good practice to check out the insurance rate before you buy.
