The reason insurance rates are going up
hey guys welcome to think insurance today we’re going to talk about rates increasing it’s inevitable in india inevitable inevit inevitable it’s inevitable rates are going to go up for car insurance for house insurance for .
insurance period here’s the real facts behind this now i’m taking a lot of data from a company called iii.org that’s insurance information institute they do all of the data and analytical type stuff i read through it and melt my brain so you guys don’t have to think of it and then i’ll interpret it in my best opinion this is my infotainment to you if you get good advice out of this the thumbs up helps me the most if you want more videos like this hit subscribe.
and let me know in the comments below what is on your mind some things that you want to talk about on this channel in the meantime let’s go right over the facts and just let you know that car insurance you think would go down because what we just had all of the things happen the last couple years and there’s not as many people driving right that’s the case not quite actually it’s reversed now cost of cars have gone up cost of used cars has.
drastically gone up that naturally indicates that the cost of repairs cost of parts the rarity of metals and some of the different things that are happening in other countries are also affecting the cost of insurance in general it’s the cost to your repair shop which filters into the cost of the car but wait there’s more so let’s get into some of
the actual numbers and the facts on what we’re saying instead of just me just saying they’re all going up and and yelling the sky’s on fire right according to this in 2020 january the cost of insurance premiums was just over 575 dollars now that dipped because of when we went into the pandemic it went straight down because nobody was driving everybody’s work from home it got below the 500 mark.
which that’s actually pretty decent i’d like to see that happen again but since then in july of 2020 that has gone back up close to the 550 to 560 mark it dipped again because we had another scare and by the end of that in january 2022 we were actually passing the 575 where it peaked before the previous years part of it was because the insurance companies whether you liked it or not and you don’t feel that it was fair or not they gave back 14 billion dollars worth of premiums in assumption that this was going to continue and it didn’t because it turned around fairly quickly this all happened and now that we’re all back on the roads and we’re buying new cars and buying used cars and whatnot the amount of claims has skyrocketed the actual premiums haven’t skyrocketed even though that’s what the title says and that’s really kind of the the click bait type thing it really has just creeped back to what it was it actually was this as we just talked about previously so those of us that are.
screaming it’s crazy and unfair some areas are affected more than others and that’s probably the area that you’re looking at let’s talk about accident frequency but before we do that if this is your scenario and you are in one of those locations don’t worry there are some solutions the best route to go and this sounds crazy but you got to shop you got to find the companies that weren’t impacted in your area not every company is the same it’s risk level per company if state farm had a low risk and didn’t have a lot of claims the rate would have stayed the same versus if company b did have a lot of claims their rate is going to go through the roof so the size of the company the conglomerates of the industry are the ones that aren’t going to be impacted as much or the ones that are small enough to where they had a good niche and it didn’t impact them either so it’s really a matter of finding which company is the best fit if you guys are interested in shopping like i always say in this channel check with your local agent if there’s something new that’s changed with them maybe they have a new company that they’re working with that happens with us all the time if you’re looking for a really good route there’s a company that i would recommend that you check out it’s called cover insurance i’ll put a link to them below they essentially shop up to 30 plus companies where you can check your all states and your progressives and your local companies that are likely going to have a really good fit for you so if that’s the case go ahead and click link below it’s an app that you download and you fill it out and it just tells you who’s got some of the best rates in your area so back to the collision frequency it’s up 42 from the third quarter of 2021. year over year that’s a pretty drastic change think of this the industry planned on the pandemic lasting longer which i’m happy it didn’t that dropped the cost of people not driving was good there goes 50 to 100 a month in cost or year or whatever the price was for you now we have 42 percent more claims happening which is just going to increase that that’s why you’re going to see an additional five percent on average there’s a 26 fatality rate increase that’s the expensive part for most of these insurers is this if somebody gets killed in an acclaim in an accident and they have to pay 300 000