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Car and home insurance premiums rose in 2022, reports have found. (iStock)
According to a recent report by TransUnion, purchase rates for auto and property insurance rose 7% and 5% year over year, respectively, in the fourth quarter. However, the organization sees this growth as a sign of recovery rather than a significant increase in purchases.
“Insurance purchasing declined significantly in the fourth quarter of 2021 and was generally subdued in 2022,” TransUnion said in its report.
The company attributes the lackluster year to several factors, including high inflation, supply chain issues that have hit the auto and housing industries, lower auto insurance marketing spend and rising premiums. But the tide could turn.
“Our report has identified greater purchasing activity in specific geographic and demographic segments,” said Michelle Jackson, senior director of private property and casualty insurance at TransUnion’s insurance business, in a statement. “For example, most auto and rental car insurance was bought in the western United States.”
“Throughout 2022, the economy was still feeling the lingering aftermath of the COVID-19 pandemic lockdown, inflation and supply chain disruptions,” the report added. “But for the insurance industry, while the end of the year was not a time of new growth, it was at least a return to old form for insurance buyers.”
If you want to reduce your overall car or housing costs, you can switch insurance providers. You can visit Credible to compare your options without affecting your credit score.
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Price is the primary concern for auto insurance buyers
The average American spent $1,705 on auto insurance in 2022, according to Insurify’s 2022 Auto Insurance Trend Report. This rate is up 4% from 2021 and 17% from 2020. Therefore, price is an important factor when buying car insurance.
According to a survey by data company AnalyticsIQ, half (50%) of Americans who were considering leaving their auto insurer said their policies were too expensive, and 37% said they would switch providers if they did would find a better deal. And 14% said they chose to bundle multiple policies together. But satisfaction also influenced the decisions of many buyers.
“Additionally, satisfaction levels predicted the predicted likelihood of switching carriers,” AnalyticsIQ said in its survey report. “As satisfaction decreased, the likelihood of saying ‘yes’ or ‘maybe’ to switch providers increased.”
Also, nearly a third (30%) of drivers are considering switching to a new insurance provider to save on costs, Insurify reported. And 65% of drivers said they are thinking about driving less. However, according to the TransUnion report, more staff are expected to return to the office in 2023.
“The increased commuting is likely to lead to an increase in auto damage,” Transunion said in its report. “Property insurance carriers may also have increased risks.”
If you’re interested in lowering your auto insurance costs, consider switching insurance providers to potentially lower your monthly premiums. You can visit Credible to get your personalized plan without hurting your credit score.
Beyond Inflation: Why Car Insurance Rates Are Expected to Rise in 2023
Almost half of homeowners say they have increased their insurance
An increase in natural disasters and other factors will increase homeowner insurance costs for many in 2022, according to an analysis by Safehome.org. Nearly half (43%) of Americans said their annual premiums increased beginning in 2021, the report found.
Home insurance costs an average of $1,584 a year, or $132 a month, SafeHome found. Here’s how it breaks down by region.
South: $1,834, West: $1,473, Midwest: $1,441, Northeast: $1,301
In addition, one in ten homeowners plans to switch to another insurance company in the near future. And 76% of those people do it to get a better price.
“The increasing number of catastrophic weather events, such as hurricanes and wildfires, are putting a strain on homeowners and insurers and are leading to significant changes in the insurance market,” Safehome said in its report. “The consequences are rising costs or even loss of contributions for homeowners.”
If you’re looking to lower your overall housing expenses, you might consider switching homeowners insurance to lower your monthly payments. You can visit Credible to speak to an insurance expert and get your homeowner’s insurance quote.
Do you have a financial question but don’t know who to contact? Email the Credible Money Expert at [email protected] and your question may be answered by Credible in our Money Expert column.
