With this rate increase, it’s important to make sure your policy provides you with enough coverage.
Cate Deventer, licensed insurance agent and writer and editor for Bankrate.comexplained that the rate hike by insurance companies is to cover the increased cost of parts for repairs and replacement of now more expensive vehicles.
“That means car insurance companies are paying a lot more in claims and then they have to raise rates to make sure they have excess funds in their claims reserves to pay those claims,” Deventer said. She also said that higher costs don’t necessarily give you better coverage.
If you need to use your insurance coverage and you haven’t increased your limits, your current policy may not cover all of your expenses.
Deventer said now is the time to call your insurer and review your policy. You want to make sure it covers today’s prices for repairs or replacement.
Deventer also had four tips for lowering your insurance premiums:
Compare the prices: If you’ve been with your current provider for a long time, you may get better rates from a competitor
Take advantage of all the discounts: Ask your insurer if there are discounts for packages or multi-car families.
Ask if your insurer gives a discount for telematics devices: These devices plug into your car and track your driving habits. Good drivers can get a discount.
Keep your driving record clean: No ticket lowers the bottom line.
Many states offer free auto insurance resources. The National Association of Insurance Commissioners provides a state directory of all insurance departments.
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