The average cost of car and home insurance premiums has skyrocketed over the past year, with auto insurance skyrocketing more the 20%—and that’s causing customers, who rarely shop around for new insurance options, to seek lower prices elsewhere.
Causes for soaring rates include the higher costs of home and car repairs, as well as more storm damage as a result of climate change. While the latter is usually relegated states more likely to deal with disasters, customers across the rest of America are feeling the pinch, too.
Forty-two percent of car insurance customers researched switching carriers over the past year, according to LexisNexis Risk Solutions data, with a similar increase for homeowner’s insurance. Even if they don’t switch, insurance companies may be less likely to raise premiums if they think the customer might go elsewhere, said Doug Heller, director of insurance for the Consumer Federation of America.
There can be a large discrepancy between insurance carriers, with some companies charging two to three times as much as others. “It is incredible the difference in pricing between different carriers,” said Pennsylvania-based independent insurance broker Kate Ferri Dawson. “One client alone, we saved $500 a month.”
