Trends Driving Social Inflation and How to Respond

social inflation

social inflationAs an insurance buyer, you may have heard the term “social inflation.” In general, social inflation refers to societal trends that influence the ever-rising costs of insurance claims and lawsuits above the overall inflation rate. As the commercial insurance market shifts, it’s important to understand what’s currently driving social inflation.

  • Third-party litigation funding—One of the factors driving social inflation has to do with increased litigation or, more specifically, litigation funding. With litigation funding, most or all of the costs associated with litigation are covered by a third party, which has increased the volume of cases being pursued.
  • Tort reform—Tort reform refers to laws that prevent frivolous lawsuits and preserve laws that prevent abusive practices against businesses. However, in recent years, states have modified tort reforms or challenged them as unconstitutional.
  • Plaintiff-friendly legal decisions—The overall public sentiment toward large businesses and corporations is deteriorating, and juries are increasingly likely to sympathize with plaintiffs. As a result, plaintiff attorneys often play to a jury’s emotions rather than the facts of the case.
  • Large jury awards—There’s an increasing public perception that businesses—particularly large ones—can afford the cost of any damages. This means juries are likely to have fewer reservations about awarding damages. In the current environment, nuclear verdicts (awards of $10 million or more) have become more common.

While it’s impossible to completely eliminate the threat of litigation, it’s important to take the following steps to ensure your business is prepared for a lawsuit:

  • Consider purchasing an umbrella policy. Commercial umbrella insurance provides financial protection above the limits of your organization’s other liability policies. It enhances existing liability coverages, helping you respond to gaps in insurance and substantial claims.
  • Protect yourself from employment practices claims. Employment practices claims are common and can be particularly devastating given social inflation trends. To protect your business, review your employee handbook regularly and ensure policies related to sexual harassment, workplace violence and similar issues are communicated effectively. For additional protection, you may want to consider purchasing standalone employment practices liability insurance.
  • Work with experienced insurance professionals. The insurance market is constantly evolving, and in the face of social inflation, it’s vital to have a competent insurance professional advising your business. Be sure to partner with a broker who has strong carrier relationships and knowledge of your industry.

As the insurance market changes, it’s important to understand what’s currently driving social inflation and take proactive steps to protect your business in the face of litigation. For more risk management guidance, contact us today.

 

Life Insurance…We All Need It, But Don’t Want To Talk About It

Life Insurance

Life InsuranceNobody wants to think about the death of a loved one or leaving a loved one behind. Unfortunately, it’s a part of life and something everyone will have to deal with at some point. So that leaves you with two options, don’t think about it and hope it never happens or have the discussion with your family and determine what you would need financially in the event of your or a loved ones death.

There are many options ranging from bank savings accounts to investments but a common option is life insurance. Life insurance is a policy that would pay a set amount at the time of the policy holder’s death. There are several different types of life insurance with different options, but all have one identical benefit, a death benefit. So how much do you need…well it’s different for everyone. MSN Money has a nice calculator that can help you determine how much you need or your insurance agent can sit down with you and help you determine the amount.

Click here for the MSN calculator

After you determine an amount, you can choose what kind. Term or Permanent, fixed or variable, there are several different options. Once again, the best way to determine what is the best form for you is to talk with your insurance agent. They are experts on this and can help you find the right product.

Click here to learn more about the types of life insurance.

And last but not least is getting the quote. Once you have decided how much you need and what kind, it’s time to get the rates. At Rinehart Insurance we use several life carriers to ensure we get the best rate possible for our clients. Call us today so we can help you protect your most important part of your life, your family!

4 Cybersecurity Best Practices For Your Small Business

Cybersecurity Best Practices

Cybersecurity Best PracticesCyberattacks are becoming more frequent and complex, and businesses of all sizes and industries are potential targets. In fact, cybercriminals increasingly go after small businesses since they contain much of the same types of sensitive information as larger enterprises but often have weaker cybersecurity defenses. Verizon’s Data Breach Investigations Report found that 43% of all cyberattacks target small businesses, and 60% of those victims go out of business within six months of the attack. There is a growing needs for your business to have cybersecurity best practices in place.  

Even if a small business survives a cyberattack, there can still be devastating consequences, such as high costs, reputational damage and unanticipated downtime. To best combat these risks, it is important for small business owners to be aware of common cyberthreats they may face, including:

  • Phishing—Phishing is a type of cyberattack that utilizes deceptive emails or other electronic communication to manipulate recipients into sharing sensitive information, clicking on malicious links or opening harmful attachments. While emails are the most common delivery method for phishing attempts, cybercriminals may also use text messages, social media messages, fake or misleading websites, voicemails or even live phone calls.
  • Business email compromise (BEC)—A BEC scam entails a cybercriminal impersonating a seemingly legitimate source—such as a senior-level employee, supplier, vendor, business partner or other organization—via email. The cybercriminal uses these emails to gain the trust of their target, thus tricking the victim into believing they are communicating with a genuine sender. From there, the cybercriminal convinces their target to wire money, share sensitive information (e.g., customer and employee data, proprietary knowledge or trade secrets) or engage in other compromising activities.
  • Malware—Malware is a general term that describes viruses, worms, Trojan horses, spyware, adware, rootkits and other unwanted software or programs. Once a malware program has gained access to a device, it can disrupt normal computing operations, collect information and control system resources. 
  • Insider threats—Workers with access to sensitive information, including contractors who have access to the company’s network, may be aware of existing security weaknesses and can exploit them more easily than an outsider. 
  • Password attacks—Using weak or easily guessed passwords or using the same password for multiple accounts can result in compromised data. In fact, over 70% of employees working at small businesses have had their passwords stolen or compromised, according to data from the Ponemon Institute.

To limit the risk of cyberattacks, small business owners should implement the following cybersecurity best practices:

  • Employee education—Employees are the most significant cybersecurity vulnerability to any organization, including small businesses. Workforce cybersecurity education is essential to teach employees to identify phishing attacks, social engineering and other cyberthreats.
  • Security software—A network firewall can prevent unauthorized users from accessing company websites, email servers and other sources of information accessed through the internet. In addition, high-quality antivirus software can perform automatic device scans to detect and remove malicious software and provide protection from various online threats and security breaches. The latest patches and updates should be installed as soon as possible to limit cybercriminals’ opportunity to exploit any network vulnerabilities.
  • Multifactor authentication (MFA)—Important accounts, including email, social media and banking apps, should require MFA to limit the opportunity for cybercriminals to steal data.
  • Data backups—Essential files should be backed up in a separate location, such as on an external hard drive or in the cloud.

As cyberthreats become more frequent and severe, small businesses should take protective measures to secure all company, personal and financial information. For more small business insights and risk management guidance, contact us today.

Did You Know Ohio Has A New Distracted Driving Law?

Distracted Driving Law

Distracted Driving LawAs of April 4, 2023, it is illegal for drivers in Ohio to use or hold a cell phone or electronic device. This is due to a new distracted driving law. According to the Ohio State Highway Patrol, at least 60,421 crashes and 209 deaths related to distracted driving have occurred in the past five years.

The Ohio State Highway Patrol and local law enforcement will only issue warnings to violators for six months, but beginning Oct. 5, 2023, they will start issuing citations. Members of law enforcement can automatically pull any driver over if they see a phone or other electric device in their hand.

Violations of the Law

Anything that involves using, holding or supporting a device while driving violates the new law. This includes the following actions:

  • Dialing a phone
  • Sending a text message
  • Looking at any social media
  • Video calls
  • Browsing the internet
  • Watching videos
  • Playing games
  • Recording video

The law does not apply to the following:

  • Wearing headphones/earphones
  • Using a device integrated into the vehicle
  • Using the speakerphone feature, as long as the device is not being supported by the driver’s body
  • Streaming audio and navigational apps; they must be set up before embarking, or use a single touch or swipe to activate.

Exceptions to the Law

According to the Ohio Department of Public Safety, there are a few exceptions to the law, which include:

  • Drivers reporting an emergency to law enforcement, fire department, a hospital, a health care provider, or a similar emergency service
  • Drivers holding a phone to their ear only during phone conversations initiated with a single swipe or touch
  • Drivers using a cell phone or other electronic device when stopped at a traffic light or parked on a road or highway during an emergency or road closure
  • First responders (e.g., law enforcement, fire, and EMS) using electronic devices as part of their official duties
  • Utility workers operating a utility vehicle in certain emergency or outage situations
  • Licensed operators using an amateur radio
  • Commercial truck drivers using a mobile data terminal

Penalties

  • First-time offense—A fine of up to $150 and two points assessed to the driver’s license
  • Second offense in a two-year period—A fine up to $250 and three points assessed to the driver’s license
  • Third or more offenses in a two-year period—A fine of up to $500 and four points to the driver’s license, plus a possible 90-day suspension of the driver’s license

However, if the driver completes a distracted driving course, they may be able to reduce their penalties.

For More Information

Drivers can familiarize themselves with the new distracted driving law by reading it in full here. Contact Rinehart, Walters & Danner Insurance Agency to learn how this law may affect you.

Does My Homeowners Insurance Policy Cover Water Damage?

Water Damage

Water damage is one of the most common reasons for homeowners to make an insurance claim. But does homeowners insurance typically cover water damage? The answer depends on the specific policy and the cause of the damage.

To ensure you’re covered for water damage due to water backup, sewer backup and sump pump failure, it is vital to speak with your insurance agent. They can review your current homeowners insurance coverage and help you purchase any necessary endorsements to provide appropriate coverage.

What Causes Water Damage?

Water backup is when water flows back into your home through a drain or a toilet due to a blockage in the main sewer line.

Another cause of water damage that homeowners may encounter is a malfunctioning sump pump. Sump pumps are designed to pump water out of a basement or crawl space, preventing water damage. However, water can flood the home if the sump pump fails. Some homeowners insurance policies may help cover sump pump failures, but it isn’t typically included in a standard policy.

Standard homeowners insurance policies do not typically cover these types of damage. Common reasons for water backups may include the following:

  • Tree roots—When searching for moisture underground, tree roots can enter older or cracked pipes, slowly causing extensive damage or blockages.
  • Aging plumbing systems—As plumbing systems age, they become more susceptible to backups and other problems. Leaky or burst pipes and faulty plumbing fixtures can also cause water damage.
  • Combined pipelines—If your city combines sewer and storm drainage lines, you may experience issues during a storm. Heavy rains can overwhelm the system and create water backup problems in your home.
  • Blockages in the sanitary main—City sewers can also become blocked over time, leading to water backing up into your home.
  • Sump pump failure—A malfunctioning or non-working sump pump could cause extensive damage to your home. Note that while a water backup endorsement may pay for damage caused by sump pump failure, it may not cover the cost of replacing the pump itself.
  • Weather-related issues—Heavy rain, floods, hurricanes and snowstorms can also cause water damage in a home. Water can enter a home through roof leaks, foundation cracks or flooding from nearby bodies of water.
  • Appliance malfunctions—Faulty parts, wear and tear, or poor maintenance can cause serious water damage. Dishwashers, refrigerators, washing machines and water heaters can cause water damage in a home.

Sewer and Drain Backups Cause Devastating Household Damage

Water damage from sewer and drain backups is a common cause of property damage. Water damage and freezing accounted for 19.9% of home insurance claims nationwide in 2020. The average homeowners insurance claim payout for water damage was $11,650 between 2016 and 2020.

How to Help Prevent Water Damage

The following steps can be taken to help prevent water damage:

  • Keep gutters and downspouts clean and free of debris to ensure that rainwater is properly directed away from the foundation of the home.
  • Grade the soil around the foundation to help prevent water from pooling near the home, which can lead to leaks and water damage.
  • Regularly maintain plumbing and sewer lines by having a plumber perform routine inspections to identify potential issues and to clear out any blockages.
  • Avoid flushing inappropriate items down the toilet or pouring grease down the sink, as these can lead to clogs and backups.
  • Install a sump pump or replace an aging sump pump to help prevent basement flooding. Regular testing and maintenance of the sump pump is important to ensure it functions properly.

Water Damage May Cause Mold Damage

Household water damage can lead to mold growth, which can cause serious health problems, especially for people with allergies or weakened immune systems. Mold can grow within 24 to 48 hours of water damage and spread quickly throughout a home.

The cost of mold remediation can be high, ranging from a few thousand dollars to tens of thousands of dollars, depending on the extent of the damage. Unfortunately, mold damage is often not covered by a typical homeowners insurance policy unless caused by a covered peril, such as a burst pipe or accidental overflow of a plumbing fixture.

Homeowners may need additional coverage or endorsements to ensure appropriate coverage for water and sewer backup-related mold damage.

How to Get Coverage for Water Backup

Homeowners can purchase an endorsement that provides water and sewer backup coverage. It’s essential to check with your insurance agent to ensure that you have water backup coverage before a damage-causing incident. The cost of water backup endorsements varies based on the level of coverage and your specific policy.

Making Sure You’re Covered

Reviewing your policy with your agent and purchasing any necessary endorsements for water backup is crucial to ensure you’re covered in a water damage incident. Contact Rinehart, Walters & Danner Insurance Agency today to learn more about your current homeowners policy coverage and available endorsements.

A Nite At The Races To Support The Domestic Violence Shelter

A Nite at The Races

It’s Nite at the Races time!!! One of Richland County’s premier events! Join us for a great night of virtual horse racing, online auction, Bourbon auction, catered meal and drinks. All proceeds benefit the programs of The Shelter. Enjoy a fun night out with dinner and an open bar provided. Plus a chance to win some great auction items, 50/50 raffle and of course horse racing. 

You can find more information and purchase tickets by clicking here. Join us in our support of The Domestic Violence Shelter for a memorable evening.  

Nite at the Races

 

 

Severe Thunderstorms; How To Prepare And Stay Safe

Severe Thunderstorms

Severe ThunderstormsSevere thunderstorms produce lightning, which is extremely dangerous. Though lightning fatalities have decreased over the past 30 years, lightning continues to be one of the top three storm-related killers in the United States. In 2014, there were 26 fatalities from lightning. Although most lightning victims survive, people struck by lightning often report a variety of long-term, debilitating symptoms.

Other associated dangers of severe thunderstorms include tornadoes, strong winds, hail and flash flooding. Flash flooding is responsible for more fatalities—more than 140 every year—than any other thunderstorm-associated hazard. Dry thunderstorms that do not produce rain that reaches the ground are most prevalent in the western United States. Falling raindrops evaporate, but lightning can still reach the ground and can start wildfires.

Before a Thunderstorm and Lighting

To prepare for a thunderstorm, you should do the following:

  • Build an emergency kit and make a family communications plan.
  • Remove dead or rotting trees and branches that could fall and cause injury or damage during a severe thunderstorm.
  • Postpone outdoor activities.
  • Remember the 30/30 Lightning Safety Rule: Go indoors if, after seeing lightning, you cannot count to 30 before hearing thunder. Stay indoors for 30 minutes after hearing the last clap of thunder.
  • Secure outdoor objects that could blow away or cause damage.
  • Get inside a home, building or hard top automobile (not a convertible). Although you may be injured if lightning strikes your car, you are much safer inside a vehicle than outside.
  • Remember, rubber-soled shoes and rubber tires provide NO protection from lightning. However, the steel frame of a hard-topped vehicle provides increased protection if you are not touching metal.
  • Shutter windows and secure outside doors. If shutters are not available, close window blinds, shades or curtains.
  • Unplug any electronic equipment before the storm arrives.

Facts about Thunderstorms

  • They may occur singly, in clusters or in lines.
  • A single thunderstorm affecting one location for an extended time can be more severe than other storms.
  • Thunderstorms typically produce heavy rain for a brief period, anywhere from 30 minutes to an hour.
  • Warm, humid conditions are highly favorable for thunderstorm development.
  • About 10 percent of thunderstorms are classified as severe; these storms generally produce hail at least an inch or larger in diameter and have winds of 58 miles per hour or higher. They can also produce tornadoes.

Facts about Lightning

  • Lightning’s unpredictability increases the risk to individuals and property.
  • Lightning often strikes outside of heavy rain and may occur as far as 10 miles away from any rainfall.
  • “Heat lightning” is actually lightning from a thunderstorm too far away for thunder to be heard. However, the storm may be moving in your direction.
  • Most lightning deaths and injuries occur when people are caught outdoors in the summer months during the afternoon and evening.
  • Your chances of being struck by lightning are estimated to be 1 in 600,000, but could be reduced even further by following safety precautions.
  • Lightning strike victims carry no electrical charge and should be attended to immediately.

During Thunderstorms and Lightning

If severe thunderstorms and lightning are occurring in your area, you should do the following:

  • Use a battery-operated National Oceanic and Atmospheric Administration (NOAA) Weather Radio for updates from local officials.
  • Avoid contact with corded phones and devices, including those plugged into electrical outlets for recharging. Cordless and wireless phones not connected to wall outlets are safe to use.
  • Avoid contact with electrical equipment or cords. Unplug appliances and other electrical items, such as computers, and turn off air conditioners. Power surges from lightning can cause serious damage.
  • Avoid contact with plumbing. Do not wash your hands, do not take a shower, do not wash dishes and do not do laundry. Plumbing and bathroom fixtures can conduct electricity.
  • Stay away from windows and doors, and stay off porches.
  • Do not lie on concrete floors and do not lean against concrete walls.
  • Avoid natural lightning rods such as tall, isolated trees in open areas.
  • Avoid hilltops, open fields, the beach and boats on the water.
  • Take shelter in a sturdy building. Avoid isolated sheds or other small structures in open areas.
  • Avoid contact with anything metal, such as tractors, farm equipment, motorcycles, golf carts, golf clubs and bicycles.
  • If you are driving, try to safely exit the roadway and park. Stay in the vehicle and turn on the emergency flashers until the heavy rain ends. Avoid touching metal or other surfaces that conduct electricity in and outside the vehicle.

Lightning Safety When Outdoors

If you are: Then:
In a forest Seek shelter in a low area under a thick growth of small trees.
In an open area Go to a low place such as a ravine or valley. Be alert for flash floods.
On open water Get to land and find shelter immediately.
Anywhere you feel your hair stand on end (which indicates that lightning is about to strike) Squat low to the ground on the balls of your feet. Place your hands over your ears and your head between your knees. Make yourself the smallest target possible and minimize your contact with the ground. DO NOT lie flat on the ground.

After a Thunderstorm or Lighting Strike

If lightning strikes you or someone you know, call 911 for medical assistance as soon as possible. The following are things you should check when you attempt to give aid to a victim of lightning:

  • Breathing – if breathing has stopped, begin mouth-to-mouth resuscitation.
  • Heartbeat – if the heart has stopped, administer CPR.
  • Pulse – if the victim has a pulse and is breathing, look for other possible injuries. Check for burns where the lightning entered and left the body. Be alert for nervous system damage, broken bones and loss of hearing and eyesight.

After the storm passes, remember the following:

  • Never drive through a flooded roadway. Water can damage your vehicle and poses a drowning hazard.
  • Continue to listen to a NOAA Weather Radio or to local radio and television stations for updated information or instructions, as access to roads or some parts of the community may be blocked.
  • Help people who may require special assistance, such as infants, children and the elderly or those with access or functional needs.
  • Stay away from downed power lines and report them immediately.
  • Watch your animals closely. Keep them under your direct control.

In addition to insuring your home, Rinehart, Walters & Danner Insurance Agency is committed to helping you and your loved ones stay safe when disaster strikes. Severe thunderstorms are a regular occurrence in Ohio and everyone should be prepared. If you would like more information on developing a family emergency plan or building a disaster supply kit, please contact us today.

April Is Distracted Driving Awareness Month And We Have Prevention Tips For You

Distracted Driving Awareness

Distracted Driving AwarenessThe National Safety Council recognizes April as Distracted Driving Awareness Month. This event is intended to raise awareness about the dangers of distracted driving and encourage motorists like you to minimize potential distractions behind the wheel. Review the following article for more information on distracted driving and ways you can help prevent it.

Distracted Driving Overview

According to the Centers for Disease Control and Prevention, distracted driving refers to any activity that may divert a motorist’s attention from the road. There are three main types of distractions that can interfere with drivers’ attentiveness behind the wheel, including:

  1. Visual distractions—These distractions involve motorists taking their eyes off the road. Some examples of visual distractions include reading emails or text messages, focusing on vehicle passengers, looking at maps or navigation systems, and observing nearby activities (e.g., accidents, traffic stops or roadside attractions) while driving.
  2. Manual distractions—Such distractions entail motorists removing their hands from the steering wheel. Key examples of manual distractions include texting, adjusting the radio, programming navigation systems, eating, drinking or performing personal grooming tasks (e.g., applying makeup) while driving.
  3. Cognitive distractions—These distractions stem from motorists taking their minds off driving. Primary examples of cognitive distractions include talking on the phone, conversing with vehicle passengers or daydreaming while driving.

Regardless of distraction type, distracted driving is a serious safety hazard that contributes to a significant number of accidents on the road. In fact, the National Highway Traffic Safety Administration reported that more than 2,800 people are killed and 400,000 are injured in crashes involving a distracted driver each year—equating to approximately eight deaths and 1,095 injuries per day. Considering these findings, it’s crucial to take steps to prevent distracted driving.

Distracted Driving Prevention Tips

Whenever you get behind the wheel, keep these distracted driving prevention measures in mind:

  • Put away your phone. Silence your phone and store it in a location that is out of reach while driving to lower the temptation to check it.
  • Plan your trip before you leave. Program your navigation system prior to hitting the road to get familiar with your journey and feel confident in your route.
  • Don’t fumble with your playlist. Select a radio station or plug in a predetermined playlist before driving to limit the need for music adjustments.
  • Secure passengers. Ensure kids are properly situated in car seats (if needed) with seat belts fastened. Keep pets stationary in the back seat.
  • Avoid multitasking. Never complete additional tasks—such as eating or personal grooming—behind the wheel.
  • Stay focused. Concentrate your mind on the road by keeping distracting conversations to a minimum and looking straight ahead.

For additional driver safety tips, contact us today.

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Navigating the Homeowners Insurance Marketplace in 2023, We Can Help

homeowners insurance marketplace

Homeowners insurance continues to be one of the essential types of coverage acquired and maintained by Americans in 2023. However, while these policies may be integral components of homeowners’ insurance portfolios, being common should not be mistaken for uncomplicated. Prospective and current policyholders should remain apprised of recent economic patterns and relevant industry trends to avoid being blindsided by changes in their coverage or costs.

Heading into 2023, several significant conditions are affecting the homeowners insurance market. Inflation continues to have wide-reaching implications for the U.S. economy, and the insurance market is far from immune to these effects. As the cost of building materials used to repair homes and goods replacing destroyed belongings increase, so too must the cost of insurance. In addition, the increasing frequency of natural disasters has led to a recent surge in homeowners insurance claims, culminating in Hurricane Ian inflicting over $67 billion in insured damages last fall.

What to Expect in 2023

Factors that influenced the homeowners insurance marketplace in 2022 are not going to disappear this year. Most policyholders should not be surprised to see their premiums continue to increase, although certain influencers may become less impactful. For example, although construction labor and building material costs continue to affect homeowners insurance costs, recent U.S. Bureau of Labor Statistics show that at least the latter’s increasing prices may be leveling off.

Severe weather events and natural disasters will likely remain significant threats in 2023. With that in mind, increasing insurance premiums, specifically in high-risk areas like southern states, should be expected. Fortunately, homeowners in some areas may enjoy some financial reprieve as government officials take action. For example, in December 2022, the state of Florida passed legislation designed to provide a safety net for insurance companies and stabilize the property insurance market.

5 Tips for Buying Home Insurance in 2023

Amid market trends and global factors mainly outside of the average policyholder’s control, there are still various ways to optimize homeowners insurance coverage and either reduce premiums or minimize increases:

  1. Bundling policies—By combining multiple components of their insurance portfolio under the same broker, such as home, auto and life, homeowners may be privy to discounts as high as 20-25%. Furthermore, bundling coverage can make it easier for policyholders to manage their insurance portfolios and decrease the likelihood of an insurer dropping them in response to an incident.
  2. Improving homes—Upgrading property can help secure lower homeowners insurance prices. Potential improvements may include installing new plumbing or storm shutters, upgrading roofs and adding security or fire protection systems.
  3. Reconsidering home features—Certain additions to your property, such as swimming pools and trampolines, may generate additional risks and exposures. Insurance companies generally must consider such conditions and raise premiums accordingly.
  4. Exploring discounts—Homeowners who have not filed a claim against their policies for an extended period (generally at least three-to-five years) may receive a discount. Even aspects of a homeowner’s life not directly related to their home could earn them lower premiums. For example, many insurance companies may offer discounts for members of the military or certain professions, such as law enforcement officers, firefighters and teachers.
  5. Reassessing coverage—Some homeowners may be able to find lower rates by shopping around for multiple quotes. Altering the details of coverage may also help to keep premiums from increasing. However, policyholders should proceed with caution when adjusting their insurance. For example, increasing deductibles may lower premiums but also mean higher out-of-pocket costs before a policy will render aid.

For most Americans, homeownership is a dream come true. However, like any significant financial investment, a home must be adequately protected by comprehensive insurance. In 2023, many factors must be accounted for while optimizing homeowners insurance policies.

For More Information

Maintaining sufficient coverage while controlling costs can be a difficult task. With that in mind, it’s essential for homeowners to work with a knowledgeable and experienced insurance agent. For more information or help navigating the homeowners insurance marketplace, contact Rinehart, Walters & Danner Insurance Agency today.

5 Tips For How To Navigate The Auto Insurance Marketplace In 2023

auto insurance marketplace

Auto rates increased an average of 9% for drivers in 2022, with 1 in 5 US drivers reporting multiple auto rate increases over the 12-month period, according to Insurify. Unfortunately for drivers and auto insurance consumers, these rate increases are expected to continue in 2023. More accidents, rising medical and litigation costs, more frequent and severe natural disasters and inflation-driven auto repair costs are all expected to contribute to continued auto rate increases in 2023. In fact, US drivers are expected to spend on average $1,895 more in 2023 for the same coverage they had at the end of 2021, said Insurify.

As drivers struggle to find affordable coverage, having an experienced insurance agent on their side will be crucial to help navigate the rapidly changing marketplace. Continue reading for guidance on using an agent to navigate the auto insurance marketplace.

Tips for Auto Insurance Buyers in 2023

Although many of the factors contributing to rising auto rates are out of your control, there are several things you can try to help reduce the cost of your premium increases. Consider the following tips to help keep your auto rates down:

  • Bundle your home and auto insurance. By purchasing multiple insurance policies from the same insurer, you could save up to 25% on your auto premiums. Ask your insurance agent to help you find eligible bundling discounts.
  • Find the right vehicle for your budget. Higher-value vehicles are typically more expensive to repair or replace, leading to higher insurance costs. While several factors may affect your auto premiums, purchasing a vehicle with a lower MSRP could help you find less expensive coverage. Before buying a new-to-you vehicle, ask your insurance agent how much you can expect to pay for auto coverage.
  • Increase your deductible. Raising your insurance deductible is one way to offset rising premium costs, but keep in mind a higher deductible will increase the amount you have to pay out of pocket after an accident. Consult your insurance agent to find out if a higher deductible plan is right for you.
  • Consider a low-mileage plan. Driving fewer than 5,000 miles a year might make you eligible for a low-mileage auto insurance policy. These policies can lower your auto rates. Report your actual mileage to your insurance agent to see if this type of plan could be right for you.
  • Ask your agent to help you find the right policy. Your insurance agent can help you shop around and compare multiple auto insurance quotes to find the right policy for your needs and budget. If you have a good driving record, less expensive insurance options could be available with a new insurance carrier.

We’re Here to Help

As you navigate the auto insurance market in 2023, it’s important to remember you’re not alone. Your insurance agent can help you search for eligible discounts and bring your auto policy into alignment with your coverage needs. Contact Rinehart, Walters & Danner Insurance Agency today to learn how we can help you navigate the challenging auto insurance marketplace.

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