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The Increase in Insurance Renewal Rates

June 5, 2023


If you’re hearing rumors that auto insurance renewal rates are rising again, know those rumors are true. Several reasons factor into the uptick in prices.

Labor shortages, supply chain disruptions, and an increase in vehicle accidents continue to bust automaker budgets, creating higher labor costs and premium pricing on auto parts and vehicles.

Car insurance companies paying higher claims likely feel the pinch the most. To mitigate escalating expenses, auto insurers pass the cost to consumers. You may first notice the trendy by way of pricier auto insurance renewal rates.

Don’t Let Your Auto Insurance Coverage Escalate 

Want to do something before your renewal notice arrives? Here are five ways you can avoid car insurance price hikes.

Compare Rates Before Your Renewal Arrives 

Remember you are not locked into your car insurance coverage, regardless of when you receive your auto insurance renewal. You can shop and compare insurance rates anytime and make a switch.

Ensure you understand what you want from your auto insurance coverage. An older car, for example, may require less coverage than you are presently paying for. Once you know the coverage you need, get at least three quotes to compare against the cost of your renewal premium.

Is another insurer offering the same coverage for less? It may be time to sign with a new carrier.

Bundle Insurance Policies 

Another way to save is by bundling insurance coverage. Almost every carrier offers discounts when you bundle, or combine, home and auto insurance coverage. Sometimes that discount can save you a lot of money.

There are other benefits, as well. Consolidating policies makes paperwork easier for both you and the carrier, for example, and having one point of contact to answer multiple coverage questions is more efficient than you think.

Ask For a Low-Mileage Discount 

Do you drive your vehicle less than the average driver or less than 8,000 miles a year? If so, you may receive eligibility for a low-mileage discount. As a low-mileage driver, you are statistically less likely to get in an accident, and most insurers will reward that behavior with discounted coverage. Drivers who drive less than 18,000 miles may be eligible for a low mileage discount in our area. 

If you work from home or commute a short distance to work, check your mileage. If you can show your insurer you’re often not on the road, let them know. Then check for the discount when your insurance renewal rates arrive.

Consider Increasing Your Deductible 

Another way to immediately lower your auto insurance coverage rate is to increase your insurance deductible. Choosing to do so, however, should come after some introspection.

A higher deductible means you may pay more out-of-pocket if you get into a car accident and are at fault. If you cannot cover the deductible, you could be stuck with an inoperable vehicle until you can pay the bill.

Ask Your Agent to Shop Your Policy 

Another way to compare auto insurance costs is to ask your independent insurance agent to shop for you. As an expert, your agent will know what you need, can line up competitive rates, and walk you through the benefits.

Before you ask, make sure your agent is independent. Independent agents can sell policies from multiple companies. Exclusive agents, sometimes called captive agents, only work with one insurance company.

About E.J. O’Neil Insurance Agency

Since 1898, E.J. O’Neil Insurance Agency has provided homeowners with reliable coverage and high-quality customer service. Today, we offer a variety of policies, including commercial, boat, automobile, homeowners, motorcycle, and renters insurance. Quotes are free by phone or online request, and we can provide notary and other services at our location. We compare prices with all of our insurance carrier partners to ensure you are getting the best price year after year. It is what helps us combat the rising cost of insurance for our customers. To find the right coverage for your needs, call 413-594-4757 or visit us online.