Milwaukee, Wisconsin – With the increase in costly hail storms and other natural disasters, home and auto insurance premiums have been on the rise, prompting frustrated policyholders to seek out more affordable options. This surge in insurance prices has led to a growing number of customers looking to save money by shopping around for better deals.
Insurance premiums have spiked significantly, with car insurance costs jumping over 20% in the past year, and home insurance premiums also climbing at double-digit rates. Factors such as rising repair costs for homes and automobiles, along with increased storm damage attributed to climate change, have been driving these price hikes across the country.
One example is Andy Palen from Milwaukee, whose homeowners’ insurance policy saw a $500 increase last year, despite having no claims. This rise in premiums has motivated many like Palen to shop around for more budget-friendly options, as there is a significant variation in prices among different insurance carriers.
While policyholders typically remain loyal to their insurance companies, insurers are now urging customers to explore other options to save money. Data shows that a record 42% of auto insurance customers have considered switching carriers in the last year, with a similar trend in homeowners’ insurance shopping.
Doug Heller, director of insurance for the Consumer Federation of America, advises people to compare policies with the same coverage and deductibles when shopping for insurance. Even if policyholders end up staying with their current carrier, the act of shopping around can demonstrate to insurers that they are price-sensitive and may prevent unnecessary premium increases.
Insurers use various data from third-party vendors to gauge policyholders’ shopping habits and price sensitivity, leading some states to caution against setting rates based on customers’ likelihood of switching companies. With insurance prices on the rise, more customers are taking the initiative to explore their options and ensure they are getting the best coverage at the most competitive rates.