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Americans are considering reducing or eliminating insurance coverage as a short-term solution to rising costs, despite the potential long-term economic consequences, Nationwide said recently. said in the survey. (iStock)
A recent survey found that U.S. consumers are considering reducing or even eliminating insurance coverage as they seek to cut costs amid economic pressures.
More than half (53%) of Americans rated their financial position between “Poor” and “Fair” when battling economic headwinds. inflation and rising interest ratesaccording to a national survey.
As a result, consumers are reducing their spending in several areas, with 38% saying they eat out less often and 32% saying they buy cheaper products than they normally use. . More than half (56%) say they are also looking for ways to save on auto and homeowner insurance policies.
“Reducing insurance coverage to save money is a short-term fix that could lead to long-term financial problems if something were to happen,” said the president of Nationwide property and casualty insurance company. said Beth Riczko, “Consumers looking for ways to save money should speak with their insurance agent to ensure their policy is the best fit for their current needs to protect against unforeseen problems.”
If you’re looking for ways to save on home or car insurance, comparing multiple insurers can help you find the best rates. Visit Credible to shop and find the best options.
Will car insurance premiums go up?due to inflation
Consumers Prepare for Recession
A Nationwide survey found that 71% of Americans are worried about recession and a possible recession in the US. More than half (54%) also said inflation and rising costs of living are having a negative impact on their mental health.
According to the Bureau of Labor Statistics (BLS), the latest measure of inflation, the Consumer Price Index (CPI), rose 8.2% annually in September, just below August’s 8.3% rise. The report also showed that shelter, food and medical costs rose in September.
Home insurance premium rates rose 12.1% annually in May compared to a year ago, according to the government. policy geniusAlso, car insurance costs increased by 19% annually in September. consumer issues.
“Consumers are understandably feeling financially vulnerable due to mounting economic pressures,” said Ben Ayers, senior economist at Nationwide. We lack a clear understanding of how to prepare for and best be prepared for.”
If you want to lower your premiums, visit Credible to compare premiums from multiple insurers and find the best option for you.
More consumers buying new car insurance to save money: JD POWER report
Insurance factors to consider
Many Americans consider cutting insurance to save money, unaware that it “could result in greater financial losses in the future.” recommends that consumers consider the following factors:
Guarantee your property to market value
According to Nationwide, consumers should make sure their insurance coverage keeps pace with rising home prices. The company estimates that two-thirds of his homes are currently uninsured, averaging 27%.
“What used to cost $300,000 to rebuild could cost $350,000 today,” Nationwide spokesman Jarrett Dunbar said. “For this reason, customers may not have adequate insurance and may be left vulnerable in the event of a loss.”
Save by bundling homeowner and auto insurance
To take advantage of insurance bundles, policyholders must have multiple types of policies from the same insurance company. Combining a home insurance plan with an auto insurance plan can offer discounts to policyholders.
Data Sharing Devices May Help Earn Discounts
Usage-based insurance allows consumers to set premiums based on how well they drive or how safe they are. Companies calculate this by monitoring driver behavior via mobile apps or devices installed in vehicles.
For example, according to Policygenius, drivers can save an average of 20% on insurance premiums by installing a connected device, smartphone, or automaker’s mobile app to monitor and report details about their driving habits.
some insurance policies Some offer safe driving discounts based on telematics options or driving records, while others offer discounts to younger drivers. To find the best rate for your situation, visit Credible to compare multiple insurance companies at once and choose the right option.
What you need to know about Insurance Score
Have a financial question and don’t know who to ask? Send an email to Credible Money Expert (moneyexpert@credible.com). Your questions may be answered by Credible in the Money Expert column.
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