Nearly 70 percent of Americans are reviewing their insurance policy, looking for lower rates: Trusted Choice
Most insurance policies are getting too expensive, causing many Americans to review their policies and think about switching providers. (iStock)
With the cost of everything on the rise — insurance included — Americans are seriously reviewing their policies, hoping to secure a lower rate.
Around seven in ten (69.3%) of those insured have begun reviewing their policies, according to a Trusted Choice report. Just under half (45.8%) of them are citing rising premiums as the reason they’re taking a closer look at their policies.
In response to higher rates, consumers are considering making some drastic choices regarding their policies. Nearly half of the respondents in Trusted Choice’s study have considered upping their deductible to save on monthly premiums.
Even worse, 22% have considered getting rid of certain insurance products altogether to save money. Most of those surveyed are also thinking of switching providers. 83% said they would switch if another company offered them lower premiums.
"We acknowledge that the current environment is prompting consumers to opt for higher deductibles, switch coverage solely based on cost, or even go uninsured," said Kevin Brandt, the executive director of Trusted Choice. "However, these are not often the wisest or most effective strategies. It's crucial for consumers to ask the right questions, engage in close collaboration with their independent insurance agents, and learn about what's affecting their coverage."
While you may be tempted to reduce your insurance coverage, or give it up altogether, having the appropriate insurance coverage is vital. To ensure your insurance is suitable for your circumstances, visit Credible to check out plans, providers, and costs.
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Natural disasters are pushing premiums up
Climate change is a major reason homeowners insurance and auto insurance rates are up, as natural disasters become more frequent.
While homeowners insurance premiums are up 21% across the country, it’s states that deal with flooding, wildfires and other natural disasters that get hit with the highest premium hikes, explains a Policygenius study.
As natural disasters are becoming more prevalent, so are insurance claims. This is particularly hurtful to the auto insurance industry which is having a hard time making ends meet. In turn, insurers raise rates for customers.
With different coverage amounts, it’s important to shop around to find the right home or auto insurance plan that fits your needs. Visit Credible to start the process and maximize the value you gain from your insurance policy.
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Inflation and false claims also contribute to higher rates
Just like other goods and services, inflation drives up the price of insurance rates. Insurance companies need to consider their bottom line and how inflation impacts it, Liberty Mutual explained. As the materials to meet claims rise in cost, insurers must raise premiums to meet this demand.
However, inflation is just part of the story. States with high claim rates are facing a rise in fraudulent claims, which drives up premiums for everyone else. Florida is one state that’s particularly susceptible to these fraudulent claims, according to the Insurance Information Institute (III).
"These two factors [legal abuse and misuse of assignment of benefits] are creating a lose-lose, contributing enormously to the net underwriting losses for the few remaining insurers in the State," said III CEO Sean Kevelighan. "What’s even worse is that insurance is becoming not just unaffordable, but also unavailable for homeowners and drivers."
Comparing multiple insurance quotes can potentially save you hundreds of dollars per year. And it’s so easy to get a free quote in minutes through Credible’s partners here.
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