BUFFALO, N.Y. (WKBW) — Saving money is top of mind for many people which is why 7 News is digging into climbing car insurance rates.
Nationwide, the average cost of car insurance rose 26%.
According to Bankrate, in the Empire State, the average annual premium is more than $3,800, which is about 4.8% of most New Yorkers' income.
So why are rates climbing and how can you cut costs?
7 News' Pheben Kassahun took these questions to the insurance experts.
"We're in a hard market in the insurance world," New Buffalo Insurance Agency president Douglas Benz said.
The cost of auto insurance is up for a variety of reasons and one expert in Buffalo said it has a lot to do with inflation and the supply chain.
"Insurers are working to become profitable by turning off the flow of new business into their company, and they're working with the states to regulate the rates that they charge to be able to charge consumers more, so while they are sort of readjusting and find their way to profitability, the consumer is kind of in a tough spot because there's fewer options," Benz explained.
Additionally, New York is one of 12 states that is a "no-fault state".
This means, each party must typically first file a claim with their own car insurance to help cover any medical expenses after an accident, regardless of who caused the crash.
Drivers in a no-fault state are typically required to carry a certain amount of personal injury protection (pip) to help cover these medical costs.
Here are some tips and tricks that can often yield substantial savings on car insurance:
- Taking a defensive driving course
- Having low mileage (driving anywhere under 7,500-8,000 miles per year)
- Paying insurance in full instead of monthly
- Decreasing your deductibles can make a notable impact
- Good student grades with at least a B average (a student making good grades or your child making good grades themselves)
According to Trusted Choice Agent Toolkit, climate change made 2022 one of the costliest years on record for natural disasters. With more than $120B in insured losses. This was also significantly higher than the previous five-year insured loss average of $97B.
"Whether it's like hail in Michigan or Wisconsin or a tornado in somewhere that's not used to that kind of thing, there's a lot of new weather patterns that are making insurers have to reevaluate some of these market places because where there was no threat of really catastrophic property damage before, now there is," Benz said.
New Buffalo Insurance Agency is located in Buffalo at 20 E Tupper St Buffalo, New York 14203.
