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Auto Insurance Rates on The Rise

By February 21, 2023No Comments

Insurance carriers are increasing the rate we pay for auto insurance…and home insurance, but that is a talk for another day. There are several factors on why auto rates are going up. Some of the biggest factors that are causing auto premiums to rise:

Inflation: The Consumer Price Index (CPI) has risen more than 7% compared to where it was in 2020. This means that on average we are spending 7% more than we were a year ago the exact same things we have been buying.

Vehicle Parts and Repair Costs: Vehicle parts increased closer to 10%. Much higher than the average 7% we all are feeling. With vehicle parts on the rise, repair costs unfortunately have increased even higher. Car Chip shortages and labor market pressures have driven repair costs by as much as 20% since 2020.

Vehicle Prices: Huge increases in car values have been an easy indicator on insurance rates. Used vehicles have jumped mare than 27% in 2021, according to Edmunds. Larger values equal larger settlements for vehicles when they are involved in an accident. New vehicle prices are up more than 14%.

Accidents: We are all back driving again. And unfortunately, the accidents are getting more severe. The Safety Administration has reported a 12% surge in fatalities, the largest increase since reporting began in 1975.

What can we do?

Our agents at Mansfield Insurance understand the growing pressures on all our pocketbooks. We are working with new customers everyday looking for some relief. Many new clients are finding better insurance rates and happier pocketbooks with some of these tricks:

Pay Plans: Some carriers will offer Paid-in-Full Discounts that can save significantly on premium if you can swing a full payment. Automatic withdraws from a checking account can save on processing and billing fees lowering the monthly payment.

Updating Deductibles: Many clients are surprised at how much premium they can save by updating their deductibles. Our agents can find ways to cover small claims like glass chips or cracks with other coverages. This lends the insured the opportunity to increase their deductible for more complicated claims, saving them money each year.

Telematics Programs: Many carriers offer a telematics program that will track your driving habits. Participating in this program will usually provide a discount. Then, once you have completed the program additional benefits like lower premiums or credits toward purchasing gift cards are available.

ERIE Rate Lock®: Erie specifically offers a unique auto insurance policy called ERIE Rate Lock®. This program allows you to lock in an auto insurance rate. Your rate will be the same year after year unless you make a qualifying change such as adding or removing a vehicle or driver, or changing your address.  

Customizing coverage can provide some relief when it comes to increasing rates. Here at Mansfield Insurance, we strive to help each client, new or old. Give us a call today to get a quoteor make some changes to your auto policy. We CARE to get it right. We LISTEN to what you need. And PROTECT you like family.