Right now, all of us are getting hit in the pocketbook as inflation continues to climb. You may have noticed an increase in your insurance premiums as well. The good news is there are many ways to save money while still having the insurance coverage you want and need.
What causes rising insurance premiums?
Many factors go into rising insurance premiums. For property insurance, extreme and intense weather events are hitting bigger areas with more frequency. The news has been filled with stories about the Texas freeze in February, western wildfires, the hurricane in Louisiana, and the devastating tornadoes that hit the Midwest. This has led to an unprecedented number of insurance claims. Combined with the increased cost of building materials and labor, it's no wonder that property insurance has increased.
Auto insurance premiums are also going up as cars incorporate advanced technology and safety features that make them more expensive to repair. Many auto insurance policies include rental car coverage, but due to an industry-wide shortage in vehicles, rental cars are in short supply in some areas. Supply-chain shortages and increased labor costs add to how much policyholders pay for coverage.
Liability insurance has seen a rise in premiums due in part to high payouts and larger settlements against businesses. Some of this increase is due to what is known as "social inflation," which is when juries try to punish businesses—especially those perceived as having "deep pockets" — by giving huge monetary awards to plaintiffs. According to the Insurance Information Institute (III), from 2014 to 2018, U.S. plaintiff awards have almost doubled in total dollar amounts, with a few exceeding $1 billion.
Commercial insurance coverage has been impacted by salary increases, payroll increases, and inflation because inflation increases sales, which in turn increases premiums.
You can lower your insurance bill
The good news for Pennsylvania and Maryland residents is there are ways to keep more money in your pocket when it comes to your insurance premiums. Here are eight ideas to help you save money when it comes to your insurance premiums:
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Get a free review of your current insurance options. As an independent insurance agency, Keller-Brown works with several top-rated insurance companies and we will compare insurance carriers, costs, and coverage for you to find the most competitive premiums. Learn how you can avoid costly mistakes with a free policy review.
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Increase the deductible on your various policies. Increasing the deductible from $200 to $500 on your auto policy may reduce your collision and comprehensive coverage cost by 15 to 30 percent.
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Bundle your homeowners and auto policies. A multi-policy discount could save you around 15 percent on premiums.
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Reduce coverage on older vehicles. If your car is paid off, dropping collision and/or comprehensive may be a good idea.
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If you're driving fewer miles, look into low-mileage discounts.
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Check your credit score. A higher score can mean lower premiums. According to one report, very good credit could reduce rates by as much as 24% as compared to average credit.
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Take a drivers ed or defensive driving course and your premium may go down.
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Pay your yearly premium in full for a potential discount. Alternatively, you can change the payment plan to monthly to help with cash flow.
Call us today and see if you can save money on your insurance premiums
There are even more ways to save on your insurance premiums, and at Keller-Brown we know what they are. If you are ready to reduce your insurance costs, call Keller-Brown Insurance Services at (800) 785-7461. We will review your existing policies and make sure you get the discounts you deserve. If there are ways to save you money on your premiums, we will find them and pass the savings on to you. At Keller-Brown, we will create a personal or business insurance program for you that delivers economy, superior protection, and risk management assistance.
As an independent insurance agency serving all of Pennsylvania and Maryland, we represent several top-rated insurance companies. We have the flexibility to find you the right coverage at competitive premiums for business, home, auto, and more.
