Our Analysis
Who Needs Home and Auto Insurance and Why?
- Home Insurance:
- Home Insurance is not required in Georgia, but it is very likely required by your mortgage lender and is highly recommended.
- Homeowners Insurance is a policy that financially protects you, your home, and your personal belongings after a covered event (like fire, wind, hail, falling object, etc.) causes a loss that is not excluded from your policy.
- If you did not have Homeowners Insurance, you would have to pay for repairs or replacement of items yourself.
- Auto Insurance:
- At a minimum, Georgia requires drivers to purchase bodily injury and property damage liability insurance for each vehicle. For your protection, we recommend more than minimum coverage and minimum limits.
- Bodily injury provides coverage for those you injure in an accident if you are at fault.
- Property Damage covers damage to someone else’s car, buildings, or fences if you are at fault.
- Drivers must maintain up-to-date insurance and keep proof of this in their vehicle.
- A lapse in insurance means the car is illegal and cannot be driven.
Our Actionable Advice
Why is My Home Insurance So HIGH?
- According to Travelers Insurance, there are several broad reasons Home Insurance is on the rise:
- Extreme weather events and catastrophes are more numerous, expensive, and harmful. In 2022, the U.S. had 15 weather events that resulted in losses exceeding $1 billion each.
- Inflated material costs, supply chain issues, labor costs, and a shortage of labor contribute to higher costs to repair or rebuild a home.
- The value of homes is increasing, leading to higher premiums.
How Can I Lower My Home Insurance Premium?
- Add protection devices like smoke detectors, fire alarms, water sensors, smart home devices, and home security systems, and ask if there are discounts for these.
- Raise your deductible.
- Avoid switching too often.
- Conversely, if you have been with the same company for years, you may want to shop for a better deal.
- Review your policy with a Licensed Insurance Professional to make sure you are covered correctly and that home improvements are accounted for, like roof replacement, deck or other home renovations, and removal of trees near the roof line.
Why is My Auto Insurance So HIGH?
- According to Travelers Insurance, there are several broad economic reasons why Auto Insurance is on the rise:
- There was an increase in the severity of car accidents between 2020 and 2022.
- The value of new and used vehicles is surging due to low supply.
- The labor and material cost to repair and replace cars is inflated.
- There are also several individual factors that cause insurance rates to increase:
- Age – Young drivers pay much more.
- Driving record – Recent accidents or tickets cause higher premiums.
- Credit history – Better credit scores usually lower premiums.
- Coverage options – Full coverage and high limits result in higher premiums.
- Type of car – Newer, more expensive and faster cars have higher premiums.
- Where you live – Premiums are higher in certain states, cities, or zip codes.
How Can I Lower My Auto Insurance Premiums?
- Shop your insurance with multiple insurance companies.
- Look for discounts like bundling, defensive driving courses, good students, etc.
- Raise your deductible.
- Sign up for Telematics.
- Pay your bill upfront.
- Avoid switching too often.
- Conversely, if you have been with the same company for years, you may want to shop for a better deal.
- Don’t switch companies if you just got a ticket; wait until renewal to shop.
- Review your policy with a Licensed Insurance Professional to determine if you can adjust any of your coverages.
The Big Takeaway
Kristi, our Home and Auto Insurance expert, is in your corner. We can sift through all the options and find the best value that fits your needs. We will do the legwork for you.
If your home and auto insurance has increased at renewal or you want to shop your insurance before renewal, please contact Kristi at 678-906-2008 ext. 1209 or send her an email.