With current car insurance rate increases, it may be time to double-check your coverage
Car insurance up 10% over the last year according to the latest Consumer Price Index
InvestigateTV - The most recent Consumer Price Index (CPI) reported by the U.S. Bureau of Labor and Statistics (BLS) shows motor vehicle insurance rates have risen 10.3% over the last year.
With this increase in rates, it’s important to make sure that your policy is providing you with enough coverage.
Cate Deventer, a licensed insurance agent and a writer and editor for Bankrate.com, explained that the rise in rates by insurance companies is to cover the increased cost of parts for repairs and replacement of now more expensive vehicles.
“What that means is that car insurance companies are paying out a lot more in claims and then they have to raise rates to make sure that they have the excess funds in their claims reserves to pay out those claims,” Deventer said. She also said that higher costs do not necessarily provide you more coverage.
If you do need to use your insurance coverage and haven’t raised your limits, it is possible that your existing policy may not cover all of your expenses.
Deventer said now is the time to call your insurer and revisit 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 rates:
Shop around: If you have been with your current provider for a long time, you may get better rates from a competitor
Take advantage of any discounts: Ask your insurer if there are discounts for bundles or multi-car families.
Ask if your insurer provides a discount for telematic devices: These devices plug into your car and track your driving habits. Good drivers may get a discount.
Keep your driving record clean: No tickets make for a lower bottom line.
Many states offer free resources on motor vehicle insurance. The National Association of Insurance Commissioners provides a state directory of all insurance departments.
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