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Military Finances 101: If Your Insurance Rates Went Up, You're Not Alone Thumbnail

Military Finances 101: If Your Insurance Rates Went Up, You're Not Alone

Insurance

If you’ve recently received a notice that your insurance rates are increasing, you’re far from alone. The average cost of car insurance has jumped more than 20% in the last year.1 The average homeowner's insurance premium rose 7.6% in 2021 from 2020.2 The countrywide average auto insurance expenditure increased 1.4%.3

Let’s look at why rates are increasing and what you can do to help mitigate these rising rates.

Why Are Insurance Rates Rising?

Insurance rates are influenced by various factors, most of which are beyond your control. Here are just some of the reasons why your premiums might be going up:

  • Inflation
  • Rising costs of living
  • Increased frequency and severity of natural disasters
  • Supply chain disruptions
  • Global unrest
  • Increase in claims
  • Medical advancements

What Can You Do About Rising Insurance Rates?

While it may seem like rising insurance rates are out of your hands, there are steps you can take to ensure that you're still getting the best value for your money.

Shop Around for Better Rates

One of the best ways to combat rising premiums is to shop around. Don’t assume that your current provider is offering the most competitive rates. Get quotes from multiple companies and compare coverage options. In some cases, you may find a better deal by switching insurers.

Bundle Your Insurance Policies

Many insurance companies offer discounts when you bundle multiple policies, such as auto and home insurance, with the same provider. Bundling can save you significant premiums and make managing your policies easier.

Increase Your Deductible

If you can handle a higher out-of-pocket cost in the event of a claim, consider raising your deductible. This can lower your premium, as insurers often offer lower rates for customers willing to take on more risk.

Ask About Discounts

Many insurers offer discounts for various reasons, such as having a clean driving record, installing safety devices in your home, or being a long-term customer. It never hurts to ask your provider about any discounts you may qualify for.

Review Your Coverage

Regularly review your insurance policies to ensure that you're not over-insured. For example, if you drive to the office less than you used to, you may no longer need as much coverage for the reduction in miles. Adjusting your coverage levels can reduce your premiums without sacrificing protection.

Paying for insurance is just one of the many financial pieces of the puzzle that individuals have to consider. While increasing premiums might seem like a lost cause and out of your control, you can do a few things to ensure you’re still getting the best rate.

Military Finances are Different

As a current or former military member, you have insurance options not available to your civilian counterparts. And as an Active or Retired Senior Military Officer on NCO, you have a lot of financial options not available to a civilian. That's why we think you should work with a financial planner or advisor that works with people like you. If you'd like to see how we do that, use the button below to schedule a free, initial consultation.

If you found this article useful, you might like the following blog posts:

Retired Military Finances 201: FEHB, TRICARE and TFL


Retired Military Finances 101: Don't Lose Your TRICARE



  1. https://www.bls.gov/news.release/cpi.nr0.htm
  2. https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-insurance
  3. https://www.iii.org/fact-statistic/facts-statistics-auto-insurance/

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