Car insurance rates are increasing in 2022, but there are still options for saving on your premiums
- Consumers are seeing rate increases of 3% to 12% among various car insurance carriers.
- Shopping around and comparing quotes can save money on your insurance policy.
- Don’t overlook discounts based on good driving and vehicle safety — they add up.
If you’ve seen an increase in your car insurance premiums recently, you’re not alone. Even if they’re accident- and claim-free, many consumers are seeing an uptick in their insurance rates.
If you’re frustrated with this additional expense, it could be a good time to consider switching providers.
Car insurers are increasing their rates
Insurers usually increase their annual rates by 3% every year. However, there were fewer drivers on the road during the pandemic, therefore fewer accidents, so rates remained generally the same or less than.
Recently, there has been an increase in drivers and accidents on the road, so insurers are raising their prices to meet the growing volume of claims. Additionally, inflation, high car prices, car parts, and labor shortages contribute to the cost that insurers pay for a claim, says Josh Damico, VP of Insurance operations at the car insurance comparison site Jerry.
Progressive, Allstate, and GEICO are a few of the insurance carriers that have approved rate-hike requests among multiple states. Rate hike-increases in November 2021 range from 3% to 12% across various companies, according to S&P Global Market Intelligence.
How to lower your car insurance costs
You still have power over your insurance cost. You could always change your insurance carrier to meet your financial needs.
“70% of people haven’t re-shopped their car insurance policy, and that means they may be leaving money on the table. If you aren’t pleased with your current rate, shop around,” says Damico.
To shop for the best deals, you can contact carriers or use their quoting tool to receive a quote, or you can go through an insurance brokerage or an independent insurance provider to gather quotes across multiple insurance carriers. You can also reference our guide to the best cheap car insurance companies to get the best coverage at an affordable rate.
Additionally, many carriers offer a telematics program to track driving behavior. Companies may look at factors like how many miles you drive, how fast you break, what time of day you’re on the road, to determine your risk as a driver. As a consumer, you can save money by opting into smart driving programs and choosing to drive safely, says Ted Olsen, managing director of Goosehead. Insurers also offer discounts based on your lifestyle. You could get additional savings for driving less or bundling insurance policies.
But whatever you do, avoid lowering your coverage in an attempt to save money. You don’t have to forgo sufficient coverage for a lower rate. Olsen says that instead of reducing your coverage, you can switch carriers or take advantage of discounts to reduce your cost.
“Even though rates are going up on average, consumers can save money by leveraging the ability of an independent agent to check the market and actually get better coverage and better protection,” says Olsen.
This content was originally published here.