Everyone is feeling the pain. The increasing frequency of catastrophic climate events in California – particularly the wildfires – have put so much stress on the insurance markets in our state. As a result, we’re now experiencing the flight of many insurers from doing business at all in the Golden State. And as supply of insurance products and services diminishes, the demand rises translating into higher premium prices for all.
“Modernizing our insurance market is not going to be easy or happen overnight,” says Ricardo Lara, the Commissioner of the California Department of Insurance. “We are in really uncharted territory, and we must make difficult choices when the world is changing rapidly.”
While no consumers, elected officials, or consumer advocates want to see prices increase, there is a sense that the era of cheap insurance is over for good.
“Do I like the days when people were paying a thousand bucks a year for their home insurance? Of course, everybody liked it,” said Bach from United Policyholders. “But we don’t have that option anymore, so something has to change.”
While government regulators work on ways to bend the cost curve down and bring the departed insurers back to California, there are still some things you can do to avoid paying too much. Though it is realistic to assume you’ll be paying more today than in the past no matter what you do. But savings are savings and here are three things you can do to ensure you’re not OVERPAYING.
- Engage your property, your neighbors and your broader community to work together at lowering wildfire risks. This means clearing overgrown vegetation, creating defensible space, etc. You’ve heard this before, but engaging as a community is important because while a fire might begin on one property, it spreads quickly to all. So, we’re in it together. The more communities focus on fire prevention, the lower the risk will be and, over time, this will help bend the risk and cost curve down.
- Take advantage of opportunities to lower your auto premiums. Take that defensive driving cost. Think about bundling your auto policy with your homeowners policy. Most importantly, shop around for competitive pricing. This last bit can be accomplished easily with the third piece of advice we offer:
- Talk to an independent California Insurance Broker like Jeanne McHugh Insurance Agency. As brokers, we are not beholden to any one insurer. We can shop your particular risk and requirements to multiple carriers and find you an array of options. Even though some insurers have left the state, we spend time every day seeking new insurers and coverage options to offer to our customers. Plus, we have a neutral posture so we can help you find the coverage that is best for you, not for any particular insurance company. And, unlike other brokers, we NEVER CHARGE ANY BROKER FEES.
For more on how we can help you with your home, auto and other insurance needs, call today! (626) 287-1357 and talk to an agent immediately.