Why is my auto insurance going up in price, when I didn't even have an accident this year??
Ken Panciera
Marketing and Sales, Private Client Group, Personal Lines Department, Starkweather & Shepley Insurance
That's the number one question from clients when they receive their renewals in the mail. Rarely do rates go down. Most often they increase, sometimes more than 10% compared to the previous year. It's a hard conversation to have with a client who hasn't had any accidents or moving violations. But most auto insurance carriers, including our partners at Hanover Insurance, will tell you the same thing.
Auto, as well as home insurance rates can fluctuate, just like the cost of living fluctuates. There are a variety of other factors to keep in mind when it comes to your customers' home and auto insurance costs, but making sure your customers have the right home and auto protection is essential for their peace of mind.
What factors go into auto insurance costs?
- Driving trends, including more distracted drivers
- Increased repair costs due to new technology
- More cars on the roads
- More injuries and lawsuits
What factors go into home insurance costs?
- More storms with higher damage costs
- Bigger homes
- Increased labor costs
- Increased liability and lawsuits
- Claim history of previous owners
- Higher cost of claims
My advice to those clients that call me and ask why their auto rates continue to increase is to drive as safely as possible. As a Trusted Advisor representing Starkweather and Shepley Insurance, if you do see your rates continue to rise, we would be happy to have that conversation with you, and compare rates with our top rated insurance carriers we represent.