INDIANAPOLIS — On average, insurance policies have gone up about 22% in the last six months.
That’s according to new research from provider matching service autoinsurance.com.
25-year-old Shawn Bond pays $450 a month for car insurance.
He says that number has been creeping up and up ever since he turned 18.
“It skyrocketed around Christmastime last year. That’s when we were up for renewal. It jumped up. And we don’t have any accidents on our record,” Bond said.
Mom-of-two Jeannette says her rates are going up too.
“She started driving and then my son starts in like a couple of months,” she said.
With two teens behind the wheel, she says their safety is always on her mind.
“Insurance companies probably have to charge more because there’s more wrecks because people are not as careful. People drive more crazy now than when I was younger,” Jeannette said.
Rates aren’t just rising in Central Indiana.
“We surveyed about 1,000 Americans and we found that the average monthly rate increase for someone with one vehicle, one driver it was about a $30 per month,” Aliza Vigderman with autoinsurance.com said.
The rise in rates is due to fraud, insurers battling rising claims and higher costs in auto repairs, car parts, medical payments and expenses.
Vigderman says the escalating cost should be motivating drivers to shop around for new quotes, but warns against reducing your coverage below what you actually need.
“If you got minimum coverage, you’d have to pay for all of that out of pocket. So, reducing coverage limits could save you money in the short term before premiums, but could end up costing you more in the long term,” Vigderman said.
WRTV spoke to local insurance agency Burns Family Insurance about the rising rates.
Eric Harrison Sr. says he receives calls every day from clients concerned about their rising premiums.
“Right now they’re higher because of inflation. It’s just like every thing else,” Harrison said. “What used to be a quick $200, $300 repair now is starting off at $1,000.”
Harrison recommends the following to save some cash on your plan.
“One thing you can do is shop with your agent. You can go higher deductible, you can bundle, if you have children in the home and they’re good students you can do that. Some insurance companies offer discounts for certain professions,” he said.