If you have received your recent car insurance bill, you may have noticed that your car insurance has increased. Every insurance company is raising rates or already have raised their car insurance rates.
Why? Believe it or not, many car insurance companies are losing money on car insurance. Yes, Minnesota insurance companies are paying out more money for claims than they are receiving for car insurance premiums. This is due to the higher cost per claim. Primarily, It is costing significantly more to replace vehicles. It is costing between 20 – 40% more to replace a vehicle than it did in 2020. Just like everything else, material costs for vehicles have been higher. It has also been taking longer to complete your car repair, which means you may be in a rental car longer. All these factors add up to higher insurance claim costs. When the insurance company pays more for claims, we pay more for insurance.
Progressive Insurance, Travelers Insurance, Nationwide Insurance Safeco Insurance, Auto Owners Insurance have all increased their auto insurance premiums. Some insurance companies have taken drastic rate increases, while others, such as Auto Owners Insurance have taken a minor increase of 3%.
How to Save Money on Car Insurance
You can maximize your discounts. You may be able to package your car and home insurance together for additional 15% discount. If you are 55 years of age or older, you are eligible to take a defensive driver course that will save 10% on your car insurance. If you have young drivers that have a grade average of a “B” or higher in high school or college, they may be eligible to save an additional 25% on their insurance premiums with some insurance companies. There are also telematics programming with most insurance companies. These are driving behavior monitoring programs that measure how fast you drive, how much you drive, what time of day you drive, how hard you tend to apply the breaks and how much you excessively accelerate. With some car insurance companies, you can save up to 30% off of your car insurance premiums.
Good Time To Shop for Car Insurance Quotes
It is a good time to look for new insurance quotes. If your insurance company has increased their rate by 25%, maybe another insurance company can save you 20% on your car insurance.
From what we are finding, all of the companies that we work with, we still have a very competitive place in the market. If you would like a quote on your Minnesota car insurance, we would be happy to help you with that. You can reach us by phone at (763)767-0522 or by filling out the short contact form listed below.