If you are like most people, you’ve probably noticed insurance rates are at an all-time high. Most carriers have increased their rates by an average of 18-20% per year for auto insurance—and an average 25-30% increase for homeowners’ insurance. To this end, we thought it might be valuable to take a moment and explore some of reasons for these recent escalations and offer our support during these inflationary times.
Throughout 2020, and during the initial phases of COVID-19, the California Insurance Commissioner placed a rate freeze on insurance companies that sell insurance in the State of California. While this freeze was lifted in late 2022, some insurance companies such as GEICO, simply decided they would no longer have offices in California, since they could no longer afford to pay out claims. Another reason for escalating insurance costs is related to current inflation rates. When it comes to automobiles, insurance coverage has also increased, due to the rising cost of parts and labor. And we cannot leave out the rising costs of health care, considering a rapidly aging population that now requires more health services that contributes to the rise of medical insurance. The hits just keep on coming.
Our recommendation is to research or “shop” your current insurance rate with several companies to see what rates they offer and how they compare to what you are currently paying. But a word to the wise…be certain in your research you are comparing “apples-to-apples.” Many people can be fooled by an insurance company’s lower pricing offered up-front, only to find out later they are not actually receiving the same coverage that they had previously. In a time when people are lowering their insurance coverage to be able to afford insurance, you will need to consider even higher coverage plans for yourself than you may have currently. The last thing you want is to be caught underinsured, which can cause a whole host of other issues for your life and your business.
At Allen Flatt Ballidis & Leslie, we come across this situation on a daily basis with our clients. You need to protect yourself with adequate limits of uninsured/underinsured motorist coverage, since you cannot rely on other people to carry adequate insurance to protect you if they should cause an accident. This is especially true in today’s environment where many people are carrying only the minimum required limits…or no insurance at all. We realize first-hand the value of having adequate insurance coverage, and this is why we offer a free insurance policy review, at no cost to you. Reach out to us today by calling (949) 752-7474 or emailing us at contactus@allenflatt.com and rest easier knowing you are adequately covered with insurance.