We want to share some insights on the state of the insurance industry and the factors driving the changes you might see in your premiums this year. Unfortunately, premium increases many consumers are seeing this year are an industry-wide issue.

While your coverage is already tailored to your specific needs, here are a few big-picture trends and statistics to remember as you get ready for renewal or to change insurance coverage.

• Through mid-August 2023, the year-to-date nationwide average increase for private auto insurance came to 11.0%.
• The increase can be traced to:
  • Driving patterns returning to pre-pandemic levels. More drivers back on the road and increase distracted driving habits has led to a rise in severe vehicle accidents.
  • A jump in labor costs as well as repairs and parts replacement costs involving new technologies like cameras and sensors. Repair costs are up 20% in 2023 alone.
  • The cost of medical care continues to rise. Bodily injury resulting from auto accidents
    is rising and more costly.
  • An uptick in natural disasters resulting in vehicle damage from hail and floods.

While rising auto premiums are concerning, we can do a few things to keep your costs low as we make our way through this challenging market. Here are several considerations:

1. Consider higher deductibles. This is certainly not a good idea for everyone, but in some cases, it can make sense.
2. Investigate safe driving telematic programs that reward you with a discount for good driving.
3. Don’t let your policy cancel or lapse. Unfortunately, carriers are not reinstating coverage as easily as they once did. If your policy lapses or cancels, they may require your premium in full before reinstating. This is across the board for every line of coverage, so make sure to pay your premiums on time or in advance just to be safe.
4. Don’t overlook tenure. Switching companies too often can hurt you in the long run. In addition, some carriers won’t take you as a new client if you have less than two years with a
   carrier. Additionally, carriers are avoiding some risk if a claim occurs in the new business term or if there are too many claims in a 3-5-year period.
5. Drive carefully. Slow down and follow the laws so you don’t get any tickets. Tickets increase your policy rates and remain on your record for 3-5 years, depending on the carrier.
6. If we haven’t already, let’s discuss bundling your auto and home for more discounts and stable pricing. The cost savings on each policy can be as high as 10-15% (or more). Absorb small claims when you are able and save for catastrophic losses. Claim frequency is a huge factor in your coverage rates.

If you have any questions or concerns, please don’t hesitate to reach out. Our expert agents are always happy to review your coverage to see if there are any opportunities to lower your premiums prior to renewal. Make sure you are covered with the right protection for your needs, call Laurie Insurance Group in our main Charlotte office at 704-342-2886 or our Southport office at 910-457-6788 or visit us anytime at www.laurieinsurancegroup.com.