You have read about it, heard about it, and even likely experienced it–insurance rates are on the rise. Several factors have contributed to these increases, including inflation, severe weather events, and costs of supplies and labor. Paying more for insurance may have you reassessing your policies and looking for ways to save money, but it’s important to know your coverages and make sure cutting the bill doesn’t put you at greater risk. So, on this year’s National Insurance Awareness Day, let’s talk about coverages and what you need to know to keep you and your loved ones protected.
According to a recent Trusted Choice survey, 86% of respondents claimed to have a strong knowledge of what their insurance policies cover, but when put to the test, many were incorrect or unsure about coverage specifics. Unfortunate events happen, and having the right coverage matters when disaster strikes.
Home Insurance
The cost of building materials and labor has shot up over the past several years which means your current coverage may no longer meet the cost of repair or rebuild in the event of a loss. If you haven’t reviewed your homeowners policy recently, now is the time to do it. An independent insurance agent can review your coverage and help determine if what you have is sufficient.
In addition to overall confusion about insurance coverage, the Trusted Choice survey found that 56% of Americans were unaware that a standard homeowners insurance policy does not cover flood insurance. Flood insurance must be purchased through the National Insurance Flood Program or a private insurance company. With an increase in natural disasters, it is more important than ever to know what your home insurance covers. From wind to earthquake coverage, make sure your policy isn’t lacking before the next storm hits.
Car Insurance
Car accidents and their severity have been increasing in recent years. According to a “2024 LexisNexis® U.S. Auto Insurance Trends Report, bodily injury severity has risen 20% from the end of 2020 to the end of 2023 and total loss claims have increased 29% during that same time period. Distracted driving violations increased by 10% from 2022 to 2023 with young drivers most susceptible to distraction.
With more reckless driving and the costs of repairs up, auto insurance rates show no signs of dropping. Even those with a clean driving record may see an increase from their insurance company. Talk to your agent about good driver discounts, telematics, and bundling insurance policies if you are looking for ways to make your coverage more affordable. With an increase in reckless drivers on the road, reducing your coverage to save money is not advisable, especially with an increase in uninsured and underinsured motorists on the road. UM/UIM coverage at least equal to your liability limits is important to consider.
The Value of an Independent Insurance Agent
With so many factors impacting the insurance industry, now is the time to speak with an independent insurance agent. Independent agents work for YOU. From shopping policies among various insurance companies to assisting you through the claims process, the independent agents at Brooks, Todd & McNeil have the expertise and experience to help you understand your coverage options, protect your assets, and assess your overall risk both today and as circumstances change over time.
Since 1839, the independent agents at Brooks, Todd & McNeil have been pleased to offer our community the best policies from a variety of providers. Our dedicated agents are ready to put their 75 years of combined experience to work on your claims. To learn more about our products and services, contact us today at (800) 448-4567.