Why do they call it an insurance “premium”? What’s so “premium” about it? 🤪 If we had it our way, every time we paid our bill, we’d get two first-class plane tickets to Fiji and a free 10-night stay at one of those villas on the water. ✈️🛖
If you’re feeling the burn of higher insurance costs, you’re not imaging things. 🔥 Insurers have gotten a lot stingier with claims over the years. Let’s dive into some recent survey data. 🥽
Here’s Five Fast Facts on the cost of insurance:
- 👛 Pinching Pennies - Insurance companies used to return a much bigger slice of premium dollars to customers filing claims. A recent study found the average payout dropped from around 80 cents per dollar in the 1990s to just 62 cents in 2024. Somewhere along the way, the insurance calculator started doing different math.
- 🤑 Greedy For Green - The insurance industry’s tighter payout math may be saving companies a lot of money. Researchers say consumers would have kept roughly $150 billion more in 2024 if payout ratios had stayed near 1990s levels.
- 📍 Locals Only - Where you live can play a big role in how protected you are from rising insurance costs. Because insurance regulation mostly happens state by state, consumer safeguards can vary widely across the country.
- 🙅🏻♀️ Loyalty Shmoyalty - Insurance companies used to reward loyalty. Now they mostly reward shopping around. Experts say comparing quotes before every renewal has become one of the easiest ways to potentially save hundreds of dollars on the exact same coverage.
- 🎮 Cheat Codes - Insurance companies hand out discounts for all kinds of reasons, but they rarely volunteer every option automatically. Everything from senior status to home security upgrades to warehouse-club memberships can potentially lower premiums if policyholders know to ask.
🔥Bottom line: If you’ve been with the same insurance provider since the dawn of time, you should look into a refresh. These days, it’s worth digging for all the deals. Did you know the average student loan defaulter is pushing 40? We might be getting older, but that debt ain’t goin’ nowhere. Read up on the latest student loan stats in this article!
Have your insurance premiums increased this year?
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