As the cost of insurance continues to rise across many sectors—whether auto, home, health, or business—policyholders are feeling the pinch. Several factors are contributing to these increases, including inflation, natural disasters, increased repair costs, and a rise in claims frequency. While these external pressures may be beyond your control, there are steps you can take to protect your budget and ensure you’re still adequately covered.
At The McClanahan Insurance Agency, we’re here to help you navigate this challenging landscape. Below are some practical tips to manage rising insurance costs while maintaining the peace of mind that comes with solid coverage.
1. Review Your Policies Regularly
Insurance needs can change over time. Take the time to review your policies annually to ensure you’re not paying for coverage you no longer need—or that you’re not underinsured. For example:
- Homeowners Insurance: If you’ve recently renovated your home, make sure your coverage reflects the new value, but also check for outdated riders you no longer need.
- Auto Insurance: If you’re driving less than before, you might qualify for a lower premium. We constantly see coverage updates that need to be made, especially if you’ve been with current carrier for an extended period of time.
2. Bundle Policies for Discounts
Many insurers offer significant discounts when you bundle policies, such as auto and home insurance. If you have multiple policies with different providers, consider consolidating them with one insurer to maximize savings.
3. Increase Your Deductibles
Raising your deductible—the amount you pay out-of-pocket before your insurance kicks in—can lower your premium. Just be sure you have enough savings to cover the deductible in case of a claim. We recommend having at least a $2500 home deductible in today’s insurance environment.
We recommend having at least a $2500 home deductible in today’s insurance environment.
Matt McClanahan
4. Take Advantage of Discounts
Insurance companies often provide discounts for:
- Installing security systems or smoke detectors in your home.
- Driving a vehicle with advanced safety features or a telematic app or device installed in your vehicle.
- Maintaining a claims-free history.
Ask your agent about all available discounts and how you can qualify for them.
5. Improve Your Credit Score
In many states, insurers use credit scores as a factor in determining premiums. A higher credit score can often lead to lower rates. By keeping up with bills, reducing debt, and monitoring your credit report for errors, you may see savings on your premiums.
6. Be Proactive About Risk Management
Preventative measures can go a long way in reducing your risks—and your premiums. For example:
- Homeowners: Keep up with routine maintenance, like roof inspections and plumbing updates, to prevent costly claims.
- Business Owners: Implement safety protocols to reduce workplace accidents and liability exposure.
7. Work with an Independent Agent
Independent insurance agents, like The McClanahan Agency, have access to multiple carriers and can help you find the best combination of price and coverage. We do the comparison shopping for you, saving you time and money.
8. Understand the Bigger Picture
Insurance costs are rising due to larger economic and environmental factors, such as supply chain issues, inflation, and climate change. While these trends affect everyone, staying informed can help you anticipate changes and plan accordingly.
We’re Here to Help
At The McClanahan Agency, we understand that rising insurance costs can feel overwhelming. Our mission is to ensure you have the right coverage at a price that fits your budget. If you’d like to review your policies or discuss ways to save, contact us today for a personalized consultation.
By staying informed and proactive, you can protect your finances without sacrificing essential coverage. Let’s work together to navigate these changing times.
Contact The McClanahan Insurance Agency today to get started!
