AAA Warns of Higher Insurance Rates and Provides Tips

MUSKINGUM COUNTY, Ohio- The U.S. inflation has risen as well as auto and homeowners insurance along with it.

According to Kimberly Schwind, a spokesperson for AAA, insurance claims have jumped as much as 30 percent.

Schwind continued to explain this rise and other factors that have caused this rise in addition to inflation.

“The price of raw materials have gone up due to inflation and issues in the supply chain so that means that the value of a vehicle and the replacement cost for your home has also risen. So as insurance carriers incur these higher costs, they’re going to pass them on to consumers and so people are going to pay higher insurance rates,” Schwind stated. “With distracted driving, we’re seeing more mobile phone use and the proliferation of in-vehicle infotainment systems, that’s leading to more distracted driving. So that increases risk coming from the driver, which is also going to increase your premium.”

Schwind also said due to an increase in vehicle technology, a bumper replacement that was once $500, would now be at least cost $3,000.

Schwind stated the best way to reduce your rate is to reduce your risk.

“Most carriers do have what is called telematics and so this is a usage based insurance that’s going to reward people for safe driving habits. So it’s typically in the form of an app that’s going to monitor your driving habits for a test period and then offer discounts,” Schwind said. “Some other discounts that you can ask your insurance agent about could be things like certain vehicle features like a rearview camera or anti theft system, possibly bundling your auto and home insurance together, that can help provide some discounts.”

Consumers can also see about completing a certain driver training course or adding a youthful driver with a B grade point average or better.

Schwind continued to state other tips and discounts options consumers can inquire about.

“If you renew with the same insurance carrier for several years, sometimes you can get a discount and sometimes paying your annual premium in full or by automatic withdrawal can help provide some discounts,” Schwind said.

As for homeowners insurance, consumers may see a 10 to 15 percent increase, which both increases the base premium and inflation coverage to every policy, according to AAA.

This increase can come from the distance of the home from a full-time fire department or fire hydrant, running a business from out of the home or having things like a swimming pool, trampoline and certain dogs.

“You could turn to an independent insurance agency, which represents multiple insurance companies and so they can do that work for you. They can compare and contrast, they can provide competitive coverage and pricing options that can meet your needs, and your budget,” Schwind said.

Consumers can also reach out to the AAA Ohio Club Auto Club Insurance Agency to get help on comparing rates or can visit at AAA.com for more information.