I’ve been gathering my thoughts so I can share some market information and prepare my clients for what is happening in the insurance industry. Rates are going up and people are wondering what is going on.
If you get your Auto insurance renewal and it goes up, it’s because your used car has significantly increased in value over the last year. It’s hard to get parts and they are valued higher than I’ve ever seen so please keep that in mind. Please don’t ask me for state minimum liability because I’m not selling it to you. Reasons why…?! If you crash into an $80k Tahoe or have a vehicle that is now worth $30k, (CA State minimums property coverage at 5K) and you will be responsible for the rest of the value of the vehicle you hit…that can leave you $40-75K in the hole. That means you are underinsured.
I’m also reviewing all of our renewals and suggesting customers increase the rental reimbursement to $50+ a day. If you can find a car to rent, they are running around $50-70 a day. Keep in mind it’s taking longer to fix cars due to parts shortages and if you are out of pocket for a rental of $20+ a day because you only had $30 a day in coverage…that adds up fast!
Due to inflation, the cost of labor and materials…costs have skyrocketed more than I’ve ever seen. The cost to completely replace your current home has increased by 40% on some. Your inflation endorsement should increase the coverage to cover it but the premium will go up. This is happening with every company no matter who you are insured with.
Please make an appointment with us to go over this, or at least speak to your current agent. It’s extremely important and please be patient. We are talking to a lot of people and looking at a lot of carriers to see what is best for our clients. I’ve been doing this a long time and have never seen anything change as quickly as it is right now.
Tips: Keep your credit score up (If you are in a credit score rating state), keep your foot off the gas pedal so you don’t get any tickets and don’t file unnecessary claims. You will become the customer everyone wants and rates reflect it.
Our goal is to be your insurance advisors, not the cheapest policy on the market. We can’t control this craziness but we can help you navigate it! Contact us for an insurance review
David J Marzili
TruSummit Insurance & Financial Services, LLC