John T. purchased a new van and went to add to his insurance policy. He found that his rates were much higher than expected. We helped John save $650 by shopping the insurance marketplace and packaging his van insurance with a renters policy.
Rising car insurance rates are being seen throughout the country. Most insurance companies have high loss ratios primarily due to the increased amount of technology within and on the vehicles themselves. Remember when a side view mirror was just a mirror?
Now Side view mirrors have electronic defrosters and motorized adjustments which are connected to computers and switches, etc. So now when a side view mirror is damaged, instead of being a $100 part — it’s a $1500 replacement! Multiply scenarios like this throughout the entire vehicle including bumper sensors, automatic parking sensors, back-up camera systems, and more! When you look at the cost of replacing damaged parts both on the exterior and interior of the vehicle, you can see how the cost would be exponentially higher.
Another factor for rising insurance rates is that drivers live further from their jobs than they have in the past and are commuting longer miles each day. This creates more exposure while on the road and increases the likelihood of an accident.
For many years car insurance was a really competitive and profitable line of business for insurance companies because safety improvements to the vehicles prevented injuries thus reducing the amount of liability claims and losses. While this is still very true, the rates got too low and are now starting to rebound higher at a staggering rate.
What can you do about this? When looking for car insurance that’s often best to reach out to your local insurance broker. Insurance brokers have access to many insurers and represent more than just one like captive agents for State Farm and farmers. Your broker can also help you package your car insurance with a home owners or renters policy and often save money on both policies.
Additionally, A broker like Stanley M. Davis & Company Insurance Brokers http://www.smdinsurance.com/, will shop the market at your renewal and make recommendations when a new carrier and/or better policy is available. Insurance brokers are not locked into one carrier liked captive agent.
