Every year, insurance rates go up. Growth in the number of accidents, cost of repairs and manpower, the frequency of natural disasters, and severity of bodily injury … the reasons were given by insurers are numerous to justify these increases.
The increase is more or less marked dependent on the products. Generally, auto and home are the most affected areas of insurance. Here are10 tips to adjust your budget and save on home and auto insurance premiums.
- Challenge your insurer every year because fidelity pays very infrequently and the best prices are usually reserved for new policyholders.
- Compare to identify cheaper contracts with equivalent guarantees on the market
- To have a good vision of the insurance market, you have to compare the contracts, and thus identify those that are cheaper than yours, for equivalent
- Use an online insurance comparator to save time, efficiency and completeness
- Comparing online is free and saves a lot of stages, imagine if you had to change or call each insurer to study his methods.
- Emphasize an online performer, often less costly, for specialists
- The advantage of benefiting the insurers present only on the network is also not to pay the product or the physical agency, and thus to benefit from better offers.
- Negotiate with the physical insurers by offering the car and the home, a second car or a provident. Insurers are more flexible if they insure more contracts.
- Adjust the warranties as close to your needs as possible (vehicle age, kilometers traveled, values of movable assets, etc.)
- It’s obvious: pay only what you need. This is as true for the shared as for the car and the home.
- Choose the annual payment as fees are applied for monthly payments
- If your insurer offers a monthly sum rather than an annual sum, be aware that the total amount of your top will be higher. Paying your car or home-based insurance premium at one time means a reduction.
- Increase deductibles to minor the price of insurance
- This is a gradient of which few know, but who can play on your insurance premium in the long run.
- Do not reduce your warranties to save in the short term because in the long run and case of an accident the calculation could be bad
This last tip goes hand in influence with the sixth. So reminisce this: list your needs, and adapt the agreements as much as possible. Be careful; your needs canmodify from year to year, so analysis them every year at the same period as you go around the insurance market to compare your contract with available offers.
Rising tariffs: how and why?
Insurance rates vary affording to three criteria: the loss experience of the previous year and the following year (estimate), the commercial strategy applied (search or margin restriction) and the financial returns of the moment.
Auto insurance will increase between 0 and 2.5% for 2015 due in particular to the rise in the cost and frequency of personal injury claims in 2014 (by 5%), which can be explained by the good weather and the lower price. Fuels, which made the USA, drove more, and also the new risk behaviors of drivers (more and more frequent use of smartphones driving).
The increase in auto insurance is however moderated by some insurers who have frozen their rates voluntarily, thus favoring commercial strategies of conquest to anticipate the competition with the entry into force of the law Harmon on January 1, 2015.
The home insurance will undergo a rise of 2.5 to 5 %, because the sector practiced levels of premiums quite low, having underestimated the weight of the climatic events and natural disasters that the year 2014 has known.