Is it all being orchestrated from above? Rates are rising all across America. They want us to own nothing and be happy. Makes you think…
With soaring insurance premiums, policyholders are increasingly motivated to shop around for better deals on home and auto insurance, a trend driven by significant price hikes across the industry. Here are four key insights into the current state of the insurance market:
Significant Price Increases: Insurance premiums have risen sharply, with car insurance costs jumping over 20% in the past year and home insurance also seeing double-digit growth rates. These increases are attributed to factors such as the rising costs of repairs and more frequent storm damages linked to climate change. These hikes are affecting customers nationwide, not just those in disaster-prone areas like Florida and California.
Home insurance rates are RISING
— The Post Millennial (@TPostMillennial) June 11, 2024
Wide Variations in Pricing: Prices for insurance can vary greatly between carriers. Some customers may find themselves paying substantially more than others in the same area, depending on their choice of insurer. For instance, Andy Palen from outside Milwaukee saw his homeowners’ insurance increase by $500 and managed to save several hundred dollars a year by switching providers.
The Benefits of Shopping Around: Despite general consumer inertia after signing up with an insurer, the current high premiums are pushing more people to reconsider their options. A record 42% of auto insurance customers have explored switching carriers in the past year, with a similar trend in homeowners’ insurance shopping. Shopping around can lead to significant savings, as demonstrated by an independent insurance broker in Murrysville, Pa., who helped a client save $500 a month.
The Apps That Snitch On Your Driving & Raise Your Insurance Rates
A major insurance company has set up a very sneaky and stealthy way to raise you insurance rates by spying on you with apps you wouldn't suspect.
Speed cameras write false tickets pic.twitter.com/s2gqsr4dl4— David Knight Show LIVE 9am EST, M-F (@libertytarian) June 14, 2024
Comparing Policies is Crucial: When shopping for new insurance, it’s important to compare policies that have the same coverage levels and deductibles. This ensures that comparisons are meaningful and can reveal the true cost benefits of switching providers. Even if one decides to stay with their current insurer, shopping around can reinforce to insurance companies that the policyholder is vigilant about pricing, potentially deterring unwarranted premium increases.
Groceries haven’t come down one penny.
Gas is still 50% higher than in 2020
Interest rates are still unaffordable
Insurance rates are up 56%
And we traded 407,000 full time jobs for 297,000 part time jobs. pic.twitter.com/5B1jML5p0O
— Eric 🚀 🇺🇸🇮🇱🇵🇱 (@Carlkeck1) June 12, 2024
Insurers Use Shopping Data: Insurers monitor policyholders’ shopping habits and price sensitivity using data from third-party vendors. This information can influence how aggressively they set individual premiums. Some states have cautioned insurers against setting rates based on the likelihood of a customer switching, advising that rates should only reflect the policyholder’s risk factors.
Major Points
- Insurance premiums for home and auto policies have risen sharply, with car insurance increasing over 20% in the past year due to factors like higher repair costs and more frequent storm damage.
- The hikes are affecting customers nationwide, not just in high-risk states like Florida and California, pushing many to reconsider their current insurance plans.
- Price variations among insurers are significant, leading some policyholders to find substantial savings by switching companies.
- A record 42% of auto insurance customers and a similar percentage of homeowners’ insurance customers have explored changing carriers in the last twelve months.
- Consumers are advised to compare insurance policies with similar coverage and deductibles to ensure they are getting the best deal, and shopping around can also prevent insurers from taking loyal customers for granted.
Susan Guglielmo – Reprinted with permission of Whatfinger News
