Insurance Premium Increase Sticker Shock!
A 29% increase! Not what I expected!
Like many people, my home and auto insurance policy renewal has come and gone without much fanfare in my adult life. I have a great independent broker who I know looks out for me and routinely reviews our policies to let us know of changes we should make.
However, I knew to expect an increase this year, as we were adding our 16-year-old freshly licensed son to our policies.Male+ 16-year-old+New Driver=$$$ And it did increase - no surprises there. To parents of young ones, be warned that your insurance premiums will go up when you add a new driver. (There is a good student discount, so remind your teen that their GPA matters!)
But then, our annual policy renewal was coming due for our home, auto, and umbrella policies. Our broker called to let us know that our auto insurance premiums were going up 29%, and our homeowner's policy was not far behind. I quickly blamed it on our teen, but that was not the case. I learned that premiums were going up across the country for people like us - no tickets, no claims, and no late payments. Additionally, it was noted that our carrier was on the low end in terms of premium increases. Looking at a different company could include an increase of potentially well over 30%.
These increases will definitely hit our pocketbook, as we know it will for most Americans!
To better understand this, I dug a little deeper, and wanted to pass the following information along to you!
This year, Americans can anticipate a 30-60% rise in auto insurance and at least a 20% increase in homeowners insurance.1
The hike in auto insurance premiums is driven by marked upsurges in bodywork repair costs and elevated prices for both new and used vehicles.2States like California and Florida have endured severe weather-related disasters, contributing to the upward trend.1 Additionally, regulation oversight and a spike in litigation, resulting in higher jury awards and settlements, have led to underwriting constraints.3This has forced insurance companies to either escalate reinsurance pricing or reduce insurance expenses.4
In efforts to curtail costs, some insurers have modified their repair policies. For instance, one broker I talked with said she is seeing companies offer coverage for patches or repairs in the event of hail damage instead of a full replacement.
Remember, staying informed and comparing options can help manage these insurance cost increases effectively.
To navigate these changes,TruMix is here to help.
While we do not sell insurance, we are happy to review your current home, auto, and umbrella policies or help you evaluate your policies at the time of renewal. If you do not have an independent insurance broker, we are happy to put you in touch with a few insurance brokers we trust to provide you with a second opinion as well.
Pleaseclick here to securely upload a copy of your policies, and we'll get in touch after we've had the chance to review the information.
1. Marshmma.com, March 1, 2024
2. Traveler's Rate Factors, May, 2024
3. Chubb - Personal Liability Trends, May, 2024
4. Amwins.com, December 11, 2023
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