Your family’s budget is getting ready to take another hit. From groceries to gas prices, a lot of us are feeling the impacts of rising costs. But what happens when it’s something you can’t go without?
“It’s not good to see something like insurance, which is something you have to have, keep going up,” San Diego resident Ian Carr said. “That’s not something to look forward to.”
A recent study by Bankrate found auto insurance premiums will go up by $101 in California, to an average of $2,291. Drivers in San Diego County will pay a little less than that – an average of $2,270.
“There’s a number of reasons why this is happening,” said Janet Ruiz, Director of Strategic Communication for the Insurance Information Institute.
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“I think we’re all experiencing inflation when you go to get your car repaired,” Ruiz said. “The cost to get parts, the labor shortage. All these things have increased.”
Ruiz said inflation is only one of the drivers behind the price increases.
“Well, we’re seeing more drivers on the road again post-pandemic. And we’re seeing bad driving behavior. There are more fatalities. There are more fender benders on the freeways,” Ruiz told NBC 7 Responds.
So what can you do to save on your premium?
- Shop around. Compare prices with multiple companies, but make sure you’re comparing the same coverage.
- Bundle coverage. Bundle your auto and homeowners or renters insurance. A lot of companies offer discounts if you do this.
- Check your deductibles. If you have a $500 deductible but have $1,000 in a rainy day fund, you may be able to afford a $1,000 deductible. Making that change would lower your premium.
- Calculate your mileage. The number of miles you drive is a factor in what you pay. So if you are driving fewer miles a year now than when you bought your policy, be sure to let your insurer know.
And don’t overlook safety when buying a new or used car. “If you’re actually looking at a new vehicle, look at the safety rating. The IIHS safety ratings come out every year and that can cost you less,” Ruiz said.
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Ruiz added that driving safely is the best way to slow down the rising insurance costs.
“Leave a little bit early for work and take the time to be safe. Don’t use your cell phone when you’re driving your car. If we call work together on these things, it will bring the cost of insurance down.”
