As with everything else, you may have noticed your auto insurance rates increase at renewal time. You may have a good driving record and great credit, but your premiums rose even when you expected them to stay the same or drop. The reality is that over the past few years, there has been up to a 10% or more increase in standard renewals. Yes, even for those drivers without any claims. You may have started coverage years ago having cheap NY car insurance rates that have risen steadily and are cheap no longer.
Why is that?
The Reasons Behind Increasing Car Insurance Rates
Several factors affect a person’s auto rates, including age, driving record, credit score and location. However, inflation and the number and severity of auto accidents are the biggest factors. On top of that, labor shortages and supply chain issues have resulted in a more than 30% increase in used vehicles, and parts and labor costs have risen dramatically as explained by https://nyinsurancehub.com/personal-insurance/car-insurance.
This has resulted in insurance companies paying more for reimbursements – repairing or replacing vehicles. For example, what used to be a few hundred dollars to repair a car after a fender bender accident commonly costs thousands of dollars today for newer cars because of all the sensors located in the bumper area. These sensors then need to be either replaced or recalibrated and it is not cheap.
Insurance companies are all about profits, and they’re now losing money because of the higher payouts. Even for someone with no claims in the last 10 years, the rates are increasing along with those individuals with claims (although their rates are spiking even higher and even coming with non-renewal notices).
The severity and number of accidents across the nation and all the other issues combined have created the perfect storm that has resulted in an increase in premiums for nearly everyone.
One would think that after years of driving claim free without any moving violation tickets that premiums would remain stable each renewal period, but for most, that is not the case. This may cause some angst in some toward their insurance company, but there is something you can do about it. Sometimes you just have to a proactive approach. Below are some things to consider in lowering your annual car insurance premiums.
How To Lower Your Premium Rate
- Bundle All Your Policies – If you have a homeowners or renter’s insurance policy, be sure to combine them with your auto insurance policy to reduce the premium on it. You can typically get a considerable discount if you bundle policies with one company, especially for your auto insurance.
- Look Over Your Current Coverage – Are you paying for coverage you don’t need, like towing and rental reimbursement? If you can afford a higher collision deductible, it can save you money on the premium of your vehicle. If you have an older car, consider getting rid of the collision and comprehensive coverage on it. Older vehicles generally don’t have a lot of value to them.
- Shop Around – You can also lower your rates by looking at other companies to switch to. You can use a reputable agency to check different carrier rates to see what works best for you.
- Take Advantages Of Deductions – Many auto insurance companies offer discounts, and some of these discounts may not have been available to you when you first took out the policy. Many discounts you can take advantage of include: safe vehicle, multiple policies, multiple vehicles, accident-free, safe driving, etc.
- Married Spouse Credit Check – Another often overlooked way to save money on car insurance for married couples is to flip flop the named insured on the policy if the current named insured policyholder has a lesser credit rating than their spouse.
Credit is a huge rating factor in today’s auto insurance industry
Say the husband is the named insured on an auto policy and has poor credit, yet his wife has excellent credit. By either rewriting the policy or insuring with a new carrier having the wife as the primary named insured, that couple could save up to 50 percent on their annual premiums.
Are Rates Expected To Rise Even More?
With inflation, supply shortages and labor issues still problematic, the expectation is that car insurance rates will continue to increase, at least for another two years.
There is also a not so encouraging trend as it relates to the rate and severity of accidents, which continue to increase year over year. The culprit for this trend tends to be found in the use of mobile phones and high tech dashboard use, also known as distracted driving. Unfortunately, safe driving programs, educational media efforts, and tough cell phone use while driving laws and enforcement have not been enough to refrain the majority of people from using tech devices while driving.
The best way to combat the rising prices is to look over your policy and talk with your insurance agent to see what is best for you. Are there any adjustments that can be made?
Sometimes, you may just have to request quotes from other insurance agencies, particularly if you happen to hold your current policy with a captive agency, one that only has access to one insurance company to write through. In this instance it would be wise to reach out to an independent agency who has access to multiple insurance companies and can shop multiple quotes for you.
If you still find that the insurance rate is still too high, consider getting NY car insurance quotes at multiple agencies for your vehicles. No two agencies are alike, one may be appointed to insurers that rate well for your particular qualification scenario where another may not. Checking with several independent agencies will be able to clear up which insurer in fact is the best company for you in your regional area.
The bottom line is that you very well may find a better deal with another company if you have held your car insurance policy with one particular company for a number of years.