Insurance Burden: The Rising Costs of Vehicle and Homeowner’s Insurance – Let’s Talk
In the 90s, we coined the term “house poor” to describe those who purchased homes beyond their means, stretching their finances too thin. The early 2000s introduced “car poor,” referring to those who found themselves in similar straits with vehicle expenses.
Today, we’re facing a new challenge: being “insurance poor.”
Insurance premiums seem to rise with every renewal, and there seems to be little we can do about it—regardless of whether we’ve filed a claim.
We’re just your average family:
– Typical home
– Standard cars
– Slightly above-average income
Yet, we’re shelling out nearly $1,000 a month to insure both our home and vehicles.
Part of this burden stems from our decision to maintain coverage that’s above the minimum—it’s not just responsible, but necessary in an increasingly litigious world.
I can’t be alone in feeling this strain.
Beyond the usual suggestions—like opting for lower coverage, raising deductibles, or enrolling in driving courses—what else can we do to alleviate this financial pressure? Let’s discuss solutions!
It’s definitely a challenging situation, and you’re not alone in feeling “insurance poor.” With premiums on the rise, it can feel like a never-ending cycle. It’s great to hear that you’re prioritizing adequate coverage—especially in today’s litigious environment—but there are a few strategies you might consider beyond the usual suggestions:
Shop Around Annually: Rates can vary significantly between insurers. Taking the time to compare quotes from multiple companies each year can help you find a better deal.
Bundle Policies: If you haven’t already, consider bundling your home and auto insurance with the same provider. Many companies offer significant discounts for bundled policies.
Evaluate Your Coverage Needs: Review your coverage to determine if you truly need the higher limits you have. For instance, assess whether certain endorsements or add-ons are necessary for your situation.
Review Your Claims History: If you’ve had any small claims, consider whether they are worth the impact they may have on your premiums. Sometimes it’s worth absorbing small damages instead of claiming.
Utilize Discounts: Many insurance companies offer discounts for things like good credit scores, being a member of certain organizations, or even for installing security devices in your home or car. Make sure you’re taking advantage of all available discounts.
Safety and Security Improvements: Investing in home security systems or making your vehicle safer (like anti-theft devices) can sometimes lead to discounts.
Join a Professional or Alumni Association: Some associations offer discounted rates on insurance.
Consult an Insurance Broker: Brokers have access to multiple markets and can help you find the best policies tailored for your needs and budget.
Negotiate Your Policy: Don’t hesitate to ask your current insurer for a review of your premiums or for discounts. Sometimes a simple conversation can lead to savings.
Consider a High Deductible Health Plan (HDHP): If you also have health insurance expenses, an HDHP can lower premiums and may also position you for Health Savings Accounts (HSAs).
It’s important to maintain a balance between affordability and adequate protection. Hopefully, you’ll find some of these suggestions helpful in managing your insurance costs!