In a recent article published by Kiplinger, David Rodeck, with contributions from Rachael Green, examines the significant rise in home and auto insurance premiums in recent years.
The authors highlight several factors behind these increases, including more frequent accidents, rising vehicle repair costs, inflation, supply-chain disruptions, labor shortages, increasingly severe natural disasters, and higher litigation costs.
The article also presents practical strategies that policyholders can consider to manage rising insurance costs. These include taking advantage of available discounts, maintaining safe driving habits, increasing deductibles when financially appropriate, reviewing coverage for older vehicles, bundling multiple policies with one insurer, and considering mileage-based insurance for low-mileage drivers.
For homeowners, the authors recommend improving home security, installing fire and water-leak detection systems, investing in weather-resistant improvements, maintaining major home systems, and reviewing available discounts. Improving credit scores may also help reduce premiums in states where insurers are permitted to consider credit information.
Although the recommendations are primarily based on the U.S. insurance market, many of the underlying principles may also be relevant to policyholders in other countries. The article provides useful insights into the challenges facing the home and auto insurance markets and practical approaches to managing rising insurance costs.
https://www.kiplinger.com/personal-finance/how-to-cut-your-auto-and-home-insurance-bills-this-year