Car insurance rates continue to rise in response to an increase in used car prices, repair costs, and accidents.
Data suggests the 41% increase in used car prices are forcing insurance providers to push rates up. This increase is also tied to the mounting severity and frequency of accidents that began during the pandemic.
The increasing rates may have a valid reason, but according to J.D. Power’s 2022 Insurance Shopping Study, drivers are putting the blame on insurance providers.
According to the study, drivers are becoming increasingly dissatisfied with their current providers as rates rise.
The study ranked providers by consumer satisfaction level. Here are the top five insurance providers based on these rankings:
- State Farm
- Liberty Mutual
Experts are certain the high-rate situation won’t change anytime soon, so in response, they have tips for drivers to help snag the best rate for their situation.
The top tip for drivers is to shop around for a new insurance provider — and to continue shopping around every six months to a year. Today, there are many online tools drivers can use to get fast quotes and easily compare from home.
Next, experts say a clean, safe driving record will generally lead to a better rate. However, shopping around is still helpful in this case as well, experts say.
For some, the second tip may be too little, too late if a driver’s past record has some accidents. In that case, experts suggest taking a look at the vehicle and the coverage options.
Certain types of vehicles and safety features can affect the insurance rate, for better or for worse.
Experts suggest drivers ask their provider about bundling home and auto, any available discounts, or choosing a higher deductible for a lower payment.
Drivers with electric cars face unique challenges, experts say. Electric cars are growing in popularity as a better choice for the environment, but insurance can be much more expensive.
The insurance benefits for both conventional and electric cars are the same, experts say, but electric vehicles are more expensive to purchase and repair.
The advice for saving on electric premiums is similar, with a few other suggestions.
Choosing a smaller electric vehicle will be more cost-effective, experts say, so when shopping around for the best rate, drivers should be sure to check out the right model.
Finally, experts suggest using alternate methods of transportation whenever possible to limit the amount of drive time.
To maintain a steady flow of leads in a tough market, experts suggest insurance providers identify their strengths, educate consumers on their options, and encourage drivers to frequently shop around.
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