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Rummel Insurance Frankenmuth MichiganHome and auto insurance prices are going up across the nation.  Did you know each state approves the rates insurance companies charge?  Insurance companies file their rate changes with the state for approval.  A state can decline an insurance company’s filing for a rate increase and tell them to try again.  This happens in real life.

There’s a difference between rates and what you pay (referred to in our industry as “premium”).  Each insurance company has their own monster equation that uses their rates and other factors to determine your premium.  For auto insurance, we’re getting reports of some rates increasing around 20%, but that doesn’t mean your premiums will go up that much.  All the rates are not going up the same amount, and all the rates don’t apply to everyone the same.

For those with a solid set of coverages on their auto policy, an annual premium increase of 10% this year is pretty good.  Many will experience premium increases higher than that.  For some, much higher.  I can’t think of a better reason or season to reach out to your insurance agent for a good conversation about all of this.

Most insurance policies renew in the spring and early summer because that’s when people buy autos and homes most frequently.  Before things get busy for your insurance agent, call them now and do three things:  (1) talk over your coverage and what risks you’re willing to take on through higher deductibles and perhaps lower coverage (be careful here!); (2) ask your agent to run through their list of insurance discounts with you so you know you’re getting the ones you qualify for; (3) ask your agent to check your insurance score.  Insurance companies vary in how often they check insurance scores.  If your credit score has improved, it’s very likely your insurance score has also improved.  Better insurance scores mean you pay less for insurance.

Insurance is getting more expensive.  The best way to get the most value from your premium is to contact your insurance agent and have a good conversation!

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