Car Insurance Rates Are Increasing

Car Insurance Rates Are Increasing

With the economy recovering, people have higher paying and more stable jobs. Not only that, but gas prices are the lowest they’ve been since 2009 which is comparable to the highs of the 1990s. All that means that people are driving more, a lot more. With more drivers on the road, driving for longer accidents

With the economy recovering, people have higher paying and more stable jobs. Not only that, but gas prices are the lowest they’ve been since 2009 which is comparable to the highs of the 1990s. All that means that people are driving more, a lot more. With more drivers on the road, driving for longer accidents are inevitable. Car insurance companies are increasing premiums to keep up with all the claims they’re paying out. Though, studies indicate that there are far less accidents than in previous years, the amount that is being paid out for each claim has drastically increased. Just looking at inflation, premiums should have only gone up by about 1% but AAA reports that the premium for a middle aged married man with an excellent driving record had their premiums go up by almost 10% in the last year. For some people that means an increase of more than $1,200. Companies like GEICO and Allstate are already well on their way to raising your premiums, regardless of how spotless your record is. In fact, Allstate publicly announced they plan on increasing premiums an average of 25% in the state of Georgia alone.

Some things to consider when shopping around for auto insurance:

Don’t Be Brand Loyal. Insurance companies often rope people into long term relationships by promising loyalty discounts or bundling policies. While you might be paying less than you used to if you didn’t stick with them, another insurance company might actually offer you a cheaper policy with the same coverage.

Don’t Be Afraid to Shop Around. Consumer Reports conducted a survey back in 2014 where 68% of people admitted to doing no comparison shopping at all. In the same survey, 53% of people have been with their insurance companies for at least 15 years. You don’t have to be a financial expert to see that just by comparison shopping you can save hundreds of dollars on a comparable policy elsewhere. If you’ve realized that you’re overpaying, you don’t even have to wait for a renewal date. Most insurance companies will refund you a prorated amount of your unused plan, just make sure that your new policy is active first.

Choose a Higher Deductible. You might be wondering why we say to go with a higher deductible. The whole point of car insurance is to have them pay for repairs if things ever go wrong, right? That’s definitely the intended purpose of insurance, but if you choose a higher deductible, let’s say $1,000 or more versus $200 or $500, then your premiums will be much lower. Not only that, but it will prevent you from cashing in small claims that will drive up your premium and make you pay more in the long run.

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