As we make our way out of the pandemic in The United States, the financial ramifications of this global event are being felt in the wallets of Americans everywhere. From gas hikes and rising prices in new home construction to increased costs in lumber and higher price points for popular grocery items like chicken, corn and fish, rumors of inflation in our nation are becoming all too real. The same holds true for the insurance industry – particularly where auto insurance is concerned. According to the State of Auto Insurance in 2021 report by ValuePenguin, we witnessed the first rate decrease in over a decade at the start of 2021 at an average drop of 1.7%. Unfortunately, premiums are still a staggering 106% more expensive across the board than they were 10 years ago. While rate fluctuations are nothing new, the days when you can hope to see a future reduction in premiums will be few and far between – unless you are buying a new car. Instead, with the added potential factor of inflation, you can expect your premiums to rise over the months and years to come. Fortunately, it’s times like these when the problem solvers at Gillman Insurance really shine.
While the average year-over-year rate increase is roughly 3-4%, some regions have witnessed rate hikes as high as double that at 7-8%. For someone on a fixed income, rate increases of 8% can be less than welcome. For instance, a retired 65-year-old married male may have a starting rate of $2,400. With an 8% increase per year, in five years, that same insurance may cost him as much as $3,526.39 – that’s a $1,126.39 increase! Before that happens to you, you can look to the experts at Gillman Insurance. We will happily shop around on your behalf to find the right combination of carrier and rates to fit your needs. It’s a bit of a juggling act because carriers tend to increase rates at different times of the year, and we can lock in your rate with a carrier that boasts rates on the low end – just before they announce their next rate increase. To request a quote, you can call our team at (678) 297-7977 or fill out our online contact form and one of our problem solvers will be in touch with you shortly.
Should you choose to stay with your current provider, keep in mind that – beyond factors outside your control like inflation – changes to your driving record, credit score, or location can all increase car insurance rates. To keep your rates in check, do what you can to protect your driving record and credit score, and do your research before you make a move – particularly to areas that are prone to crime or natural disasters.
For additional tips and the latest insurance related news, be sure to bookmark our blog at www.gillmanins.com.