Your car insurance get cheaper in 2023 and 2024. let's dive in and go through the factors that have caused the rate increase and let's see if there's pieces that we can find where your insurance may get less expensive in most cases we're claiming 2023 to be one of the larger increases that we've seen in general and there's some reasons why which we're going to dive into right away it sounds kind of weird but rates Have actually been increasing since the pandemic and I know you're like oh my gosh I'm so tired of hearing about this but it really has completely changed the way that people even drive let alone the cost and the prices that we've given out and partially inflation so there's kind of a handful of things that are happening one of the five pieces that are a major increase on your premiums is the supply chain this was directly impacted from the pandemic because of The cost of materials everyone says inflation cost of metals costs of things like that but that really started because nobody could drive when the states shut down the whole economy stopped and when that happened there was no supplies going out the laborers to make the metal parts and whatnot weren't available because of the shutdowns now when that started to turn around the opposite happened and there were no drivers to drive everything back and Forth so one of the biggest pieces that we saw was the supply chain and the availability to get car parts in anything for insurance purposes now is this the insurance direct problem no because they don't do anything with fixing and supplying the vehicles that's up to the shop in their cases it was they were happier to send you to a shop that you knew because now you could blame the shop and not the insurance most insurance is unfortunately have Tied themselves to shops to give you better warranty so if you fix at our shop we'll give you a guaranteed lifetime warranty blah blah blah blah and they get a better deal at that shop for the labor everybody wins because you get your car fixed but now that everything's slowed down they're getting more of a bad rap so they're more eager to have you go to your own shop to find out the supply chain has completely changed the time frame that it costs to Get your car fixed that directly impacts the second reason which is the price of cars the price of cars have exploded I guarantee you if you go online you're going to find any car that you would have bought three years ago about 10 to 20 probably even 30 percent more expensive used let alone new you can see cars on the Lots where people were waiting months and it's almost a year back to get a Tesla so depending on the vehicle that you're looking to get There's so much more demand for vehicles and that leads into the third piece which we kind of already mentioned which is labor shortage part of that is because of what happened there a lot of people realize that I don't want to work the rest of my life when something wipes out a lot of humans off of the face of the Earth especially because of disease or something that's almost uncontrollable you get a different perspective people Are looking at life as I want to do x with my life I want to spend more time with my family and that realizing that it anything could change at any time has caused a labor shortage fortunately I didn't get that feeling because I insurance was like one of those you're always needed and I actually worked more during that time which kind of made things a little bit crazier but I can see where you're coming from if I had something that drastically changed my Life if I had to go to the hospital for three weeks and I'd come out of the hospital and I realized I've been working 80 hour weeks 90 hour weeks I'm not going to do that for a while I'm gonna try to enjoy my family and friends and realize that life isn't just about making money and trying to move up any type of ladder but what that did is that created the great resignation where people realize that they can work remotely they don't have to work in a Sweatshop they don't have to work on the line for a dealership for car parts they don't have to put themselves in positions that they're not comfortable or happy and that has created that great resignation or the silent quitting situation it is starting to change right now and going in a few years from now it will come back in my opinion but right now the fact that that happened from 2020 2021 and now going into 23 and 24 that is starting to flow back in to this Situation that we're having as far as the shortage of vehicles shortages of precious metals and the availability to get them on the correct timing the fourth major piece that's changing our prices going forward is the number of accidents for some reason we can't drive anymore I don't understand but according to Motley Fool they did a study and they purchased a study where we're at our 20-year High We have had more deaths due to car accidents vehicle-related Accidents than we have in any other year so coming back to driving a lot of us bought new cars a lot of us got on the road and there's a lot of younger drivers that were age 15 hitting 16 and 17 not that that's where they're coming from but there's a major risk there with that being the major piece that insurance is scared about they are going to raise the rates because of these reasons the insurance company knows what a car Is worth they don't know what kind of liability claim could happen and they sell you the best policy for you if your agent's doing the right job they're going to give you a 500 000 liability limit even though you may not have a half million dollars worth of assets it still protects you now in past days you never used it because there was no claim to have we were safer drivers when you do that you're seeing that people are having larger claims and those larger Claims are affecting the insurance companies directly where they would normally give you the peace of mind with a good coverage and a few people would claim on that they're giving you the peace of mind but a lot of people are claiming on that more than normal that has caused the insurance companies almost to lose the direction that they had because they are on a very thin margin but just across a lot of people they make millions and tens and hundreds Of millions of dollars but it's based on the small numbers of each person and when those small numbers rank up for higher for each driver that causes a pretty big disruptive effect in the insurance Market a fifth major reason that the insurance rates have climbed up as high as they have is the climate change for another weird reason happening just like we had trouble with driving the climate has have troubling understanding what the world wants to do It is snowing in Texas it is multiple large hurricanes in Florida it is all of these major weird floods in different situations where they're not counted for they're not accounted in the insurance department the risk factors that they assume are going to happen are happening more often than they've expected this alone has caused Florida and Texas to be two of the hardest states to ensure right now along with Louisiana for some reason those states have jumped Up in price almost three to five times as much let alone companies having to completely go unsolvent so how do you fight back and get these rates back to where they should be because it is very possible there's a lot of good ways to get your insurance back to where it should be the first way is to make sure you're with the right company the biggest thing you may see if you've watched any of my other videos is we talk about a profile and customers are Perfect profiles for certain companies in certain times and situations there are a lot of companies that change and shift the way that their products are and they may be better or worse for you depending on what that next level was so for you if you don't feel like you're with the right company you may want to look around at some other options if you love your agent go to your agent give them the opportunity if not I'll give you a link in the description below Where you can shop around to multiple companies and see what other options are available to you keep in mind the biggest thing that I focus on and I've always focused on is making sure the coverage is the right coverage first and then the price is where it is second I've honestly had a lot of people who have done quotes with us and we ended up having to raise the coverage and even cost a couple dollars more in some situations just because the agent gave Them the cheap price but they weren't covered correctly so it's kind of nice to at least know where you're at and where you should be so you can make the decision that's best for you obviously increasing your deductible is going to make a big impact but it depends on the location if there's a lot of claims in that company you're with that profile and that company matchup then sure the higher deductible is going to give you a lower Cost but you got to keep in mind can you pay that out of pocket is it worth it to raise that deductible just to know that you can't afford it if you have it so keep in mind there is some give and take yes it will lower the premiums no matter which way you go but can you afford to fix the car if you have a major claim bundling has been huge and it's actually starting to break up a little bit more now because the cars have been a problem the houses have not been as big of a Problem so if you bundle your insurance with one company you're likely going to get 20 to 30 percent off but I've been seeing a few of those situations where if you have a little bit heavier risk then put in your car with more of a meeting risk type company and putting your house with more of a premium company can sometimes save you the most so getting a local agent or an agent that can shop that and see what everybody's options are might still be a Better way most case bundling makes sense more of a long-term solution is fix your credit there's a clear indication where Insurance scores and credit scores are very similar they have a lot of little pieces that match up and the better Insurance score that you get the better price that you're going to get if you have a really good history really good longevity with a company a really good insurance score and you're in a good area your rates shouldn't be Very much at all like I said shopping around is a big one that's why I have that link in the description below but apart from that checking on the different discounts that are available to you instead of going too in depth on discounts I've already made a few videos on this channel that are going to help you with that portion there's two that you should look for one is a discount that we talk about the associations I'll put the discount video that there and Very similar we have a discount that has the most major discounts that you can apply for if you want to check those out they're going to give you the best options for discounts like I mentioned links below if you want to get a quote otherwise I'm Mark with think Insurance I'll see you in the next one .