Have you noticed it? More people are working, the economy is improving, more people have disposable income to buy products, homes and new cars. However, with that comes more traffic on the roads, more people driving who maybe shouldn’t be, and lets face it… more accidents!
So what does this mean for us? Higher costs for Auto Insurance… in fact nearly every Auto Insurance carrier nationwide is bleeding money right now, or about to. You might ask why? Accidents alone are not the sole cause…
The recent increase in “Leasing” cars over the last 5 years is one of the main culprits, due to the ability for most people to afford leasing payments, but not the financing. More and more people are getting into cars they wouldn’t normally drive (or afford), compound that with the fact that many of these people are bad drivers who used to carry liability only insurance. Now, these people are leasing new cars and getting full coverage policies.
See, 60% of Californian’s are what we call “Non-Standard”, this means people who are driving with tickets, accidents, DUI’s, suspensions, or part of the 3 out of 8 drivers in California driving without insurance. Yes, 3 out of 8! Further driving up the costs for the rest of us. In fact, most insurance companies are taking at least a 5-7% increase over the next 6 months, with some like Geico, State Farm and Allstate for example, going up as much at 35-40% in some cases, over the next year! Yikes!
So what can you do to keep your rates lower? Drive safer, make sure you are bundling all your vehicles on one policy. If you rent or own a home, see if your Auto Insurance company or your agent can bundle your renters or home with your Auto. Ask about certified mileage programs and mileage discounts from your agent, if you drive under 10,000 miles a year, you could be eligible for a discount.
Read, read, read your notices! Insurance companies send mail like coupon companies, but they often contain important information about your policy such as rate increases, discounts, and more. If you aren’t sure, ask your agent to be sure you have all available discounts.
When in doubt consult your agent, or give us at HVH Insurance a call. Since we shop over 50 insurance carriers and aren’t married to a single company, we can shop for you and be sure you have the best coverage at the lowest price. We also shop for you every year on renewal to be sure you are always taking full advantage of the best options available. Plus, our knowledge agents can bundle all your policies and even help with business and complex commercial risks.
If you ever have a question or concern, drop us a call at 888-498-4495, we would be glad to help in any way.
Justin Di Bene, COO
HVH Insurance Services
