Rising personal insurance costs: What’s driving the trend and what you can do
Personal insurance costs have been rising steadily in recent years, and the trend is expected to continue in 2023 and beyond. There are a number of factors driving this increase, including inflation, more severe weather events, and increasing medical costs.
Inflation is a major factor in rising insurance costs. When the cost of goods and services increases, so does the cost of insurance claims. For example, if the cost of repairing a car after an accident increases, insurance companies will need to charge higher premiums to cover their costs.
More severe weather events are also contributing to rising insurance costs. Climate change is causing more frequent and severe storms, floods, and wildfires. These events can cause billions of dollars in damage, which insurance companies have to pay for. As a result, they are raising premiums to cover their losses.
Increasing medical costs are also driving up the cost of health insurance. The cost of prescription drugs, hospital stays, and other medical services has been rising for years. This is putting a strain on health insurers, who are passing the cost on to consumers in the form of higher premiums.
The rising cost of personal insurance can be a burden for many families. But there are a few things you can do to reduce your premiums:
- Shop around and compare quotes from different insurers. There is a lot of competition in the insurance industry, so it’s important to shop around for the best deal.
- Raise your deductibles. A deductible is the amount of money you have to pay out of pocket before your insurance coverage kicks in. Raising your deductible can lower your premium, but it’s important to make sure you can afford to pay the deductible if you need to file a claim.
- Take advantage of discounts. Many insurers offer discounts for things like safe driving records, bundling policies, and installing security features in your home.
If you’re struggling to afford your personal insurance premiums, there are also a number of government programs that can help. For example, the Low-Income Home Energy Assistance Program (LIHEAP) can help you pay for your heating and cooling costs. And the Medicare Savings Program can help you pay for your Medicare premiums and deductibles.
If you’re concerned about the rising cost of personal insurance, be sure to shop around and compare quotes from different insurers with Insure Local.