Nearly 70% of Americans are reviewing their insurance policy in search of lower rates: Trusted Choice

Most insurance policies are becoming too expensive, causing many Americans to reconsider their policies and consider switching providers. (iStock)

With the cost of everything – including insurance – rising, Americans are seriously reconsidering their policies in hopes of securing a lower rate.

About seven in ten (69.3%) of policyholders have started to review their policies, according to a report by Trusted Choice. Just under half (45.8%) of them cite rising premiums as a reason to take a closer look at their policies.

In response to higher rates, consumers are considering making some drastic choices about their policies. Nearly half of Trusted Choice survey respondents have considered increasing their deductible to save on monthly premiums.

Even worse, 22% have considered getting rid of certain insurance products altogether to save money. Most of the respondents are also considering a change of supplier. 83% say they would switch if another company offered them lower premiums.

“We recognize that the current environment prompts consumers to choose higher deductibles, switch coverage based solely on cost, or even go uninsured,” said Kevin Brandt, CEO of Trusted Choice. “However, these are often not the wisest or most effective strategies. It is critical for consumers to ask the right questions, engage closely with their independent insurance agents and learn what affects their coverage.”

While you may be tempted to reduce your insurance coverage or drop it altogether, having the right insurance coverage is vital. To make sure your insurance is right for your circumstances, visit Credible to check plans, providers and costs.

HOME INSURANCE COSTS ARE RISING: HERE’S WHY

Natural disasters raise premiums

Climate change is a major cause of homeowner and auto insurance prices rising as natural disasters become more frequent.

While homeowner insurance premiums rose 21% nationwide, states dealing with floods, wildfires and other natural disasters were hit with the highest premium jumps, a Policygenius study explains.

As natural disasters become more common, so do insurance claims. This is particularly damaging to the auto insurance industry, which is struggling to make ends meet. In turn, insurers raise rates for customers.

With different amounts of coverage, it’s important to shop around to find the right home or auto insurance plan that fits your needs. Visit Credible to start the process and maximize the value you earn from your insurance policy.

AUTO INSURANCE PREMIUMS AND CLAIMS STILL RISE: STUDY

Inflation and false claims also contribute to higher rates

Like other goods and services, inflation raises the cost of insurance rates. Insurance companies need to consider the bottom line and how inflation affects it, Liberty Mutual explained. As claims handling materials increase, insurers must increase premiums to meet this demand.

However, inflation is only part of the story. States with high claims rates face an increase in fraudulent claims, which raises premiums for everyone else. Florida is one state that is particularly susceptible to these fraudulent claims, according to the Insurance Information Institute (III).

“These two factors [legal abuse and misuse of assignment of benefits] are creating losers, contributing enormously to net insurance losses for the few remaining insurers in the state,” said III CEO Sean Keveligan. “Worse still, insurance is becoming not only unaffordable, but unaffordable for homeowners and the drivers.”

Comparing multiple insurance quotes can potentially save you hundreds of dollars a year. And it’s so easy to get a free minutes quote through Credible partners here.

Have a finance-related question but don’t know who to ask? Email the trusted money expert at [email protected] and your question can be answered by Credible in our Money Expert column.

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