Avoid the MASSIVE price increase coming around the corner.
Updated: Sep 28
I don't like it, but you should hear this.
I sit in a pretty sweet spot.
The company I work for is spread-out over the entire the United States. This gives me insight into trends happening across the nation. Usually California starts trends, but this time it'll be one of the last to the party.
See, California tried to be helpful by making sure they kept prices as low as can be during the pandemic. In fact, the commissioner of insurance in California hasn't allowed any price increases for auto insurance since the beginning of the pandemic.
Great idea to look out for customers during the pandemic, but it lasted Way. Too. Long.
Obviously we've hit inflation pretty hard recently, and companies are going out of business left and right. Insurance companies are begging the commissioner to let them raise prices in order to keep up with the economy. Most insurers are actually losing money on every claim
See, this year is an election year and the commissioner is going for a round 2. He wants to get re-elected. How do you do that? Well if you can claim that you've kept prices low for customers through a pandemic and through inflation, that's good marketing.
The problem is that this isn't sustainable.
After the election, it is speculated, and honestly almost guaranteed, that prices are going up…a lot.
We've seen it in almost every state over the last few months. Companies blatantly raising premiums by 15%, 20%, 25%, or even more. As a business, they need to do it to stay afloat.
SO what's the best way to go about this?
First of all, get ready to pay more. Budget more income for insurance specifically however possible.
Secondly, review your insurance with an independent agent and get an annual policy (yes, 12 months not 6 months). That way you'll lock-in your premium for at least a year.
Who knows, maybe inflation will be down by then. Maybe you'll just save a year of savings. Either way, that's a win for you.
Help yourself out and do the work now, before it's too late.