Why Your Insurance Rates are on the Rise

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It’s expensive to live in today’s world, no doubt about it. But should it be thisexpensive? It’s always a good idea to know what you’re paying for and educate yourself on your family’s insurance rates.

Here are a few reasons why your bills may be higher than usual according to Renee Corwin-Rey at Corwin-Rey Insurance Agency.

1. Your state says so.

Truth be told, there’s only so much you can do about the insurance rates for your particular state. Each state, Washington included, has its own state department of insurance, and that department determines what the reasonable baseline is. Each insurance company files their rates with the department of insurance, and it is highly regulated.  

It is required to carry liability insurance with a basic liability limit of $25,000 in Washington, although there is no way to control that everyone that owns a vehicle in the state actually has that coverage.  The required basic liability limit is important to remember when you’re deciding whether to add uninsured or underinsured motorists coverage to your policy. 

“All insurance, medical, auto, home, etc. is basically a pool of money.  You are transferring the risk to the insurance company, instead of taking on that risk yourself.” Corwin-Rey explains.

2. You drive the car of your dreams.

Are you basking in the shiny glow of that new foreign sports car? Well, be prepared to cough up a few extra dollars for the upkeep. Even the basic items on cars are considerably more expensive these days. Replacing a windshield, for example, might have cost $300 in years past, but thanks to evolving (and more expensive) technology, it could cost four times as much.

3. The area of town you live in is highly populated.

Let’s say you live in a densely populated urban area, such as Seattle. Your insurance rates are undoubtedly going to be higher than they would be if you live in a more rural area. Interestingly, both car insurance and home insurance might be affected by this.

Car insurance tends to be higher when there’s traffic and other drivers to consider, and home insurance rates can hike when resources that protect your home aren’t around.



“Home insurance hasn’t skyrocketed the way car insurance has,” notes Corwin-Rey. “But an increase in your premium can happen, depending on how far you are from things like a fire department.”

4. Other expenses add up.

It’s no secret that everything is a little pricier nowadays. And, naturally, that price translates to other costs.

“If you are in an accident, and need emergency transportation to a hospital, we have seen basic ambulance costs increase, and if needed, emergency helicopter rides can be up to $100,000,” says Corwin-Rey. “Not to mention that the cost of emergency room care has risen. And then ongoing effects of being in a car accident – say you are injured and need rehab – also come into play.”

“Medical coverage comes into effect not only for yourself on your own policy, but the liability cost of causing harm to someone else.  Since these costs have risen, we see the price of basic car insurance rise as well,” Corwin-Rey shares.

Call your insurance agent to get a quote on any vehicle you are going to purchase. Agents can quickly let customers know what it will cost to insure a certain vehicle, compared to another vehicle.

5. You haven’t reviewed options with your agent

It’s a great idea to sit down with your agent and review your insurance portfolio to make sure you are covered properly where you need to be – and that you aren’t paying too much where you don’t.

“Reviewing your policies can actually uncover many surprising things. After all, it comes back to the basic idea of insurance: transferring the risk from yourself, to the insurance company, and when it is needed, as long as you have the coverage that is correct for you, then you are protected,” Corwin-Rey explains.

If you’re interested in reviewing your current insurance or shopping for new insurance, contact Renee Corwin-Rey and other qualified agents at Corwin-Rey Insurance. Visit FarmersAgent.com/RCorwinRey or call (360) 414-8754 to get started.