Auto insurance rates have climbed more than 20 percent in the past year, according to government data.
That has many people wondering what they can do to bring their payments down or at least keep them from going higher.
Scott Sherman, Financial Education Manager at Mountain America Credit Union, joined us with advice on shopping for auto insurance.
He says there are a lot of factors that go into setting insurance premiums which include the type of vehicle, driving record, even credit scores.
Insurance companies are also accounting for inflation in the cost of vehicles and repair.
Homeowner insurance is also going up for some people.
But, Sherman advises against cutting back on insurance to save money.
He says, "Perhaps the best way for people to think about insurance is this: There are certain risks we all face that something unfortunate could happen. Insurance allows us to transfer the cost of those risks from ourselves to the insurance company in exchange for some amount of money."
Sherman offered suggestions for people wanting to save money.
Some insurance companies give discounts for bundling things like homeowners and auto insurance.
You could also look at increasing your deductible he says.
Sherman also says you don't need to wait until your policy expiration date to shop around.
You can contact an insurance broker like Mountain America Insurance Services. You give them your information once, and they can see across dozens of different companies what your cost would be for different levels of coverage.
To get in touche with them, visit MACU.com/insurance or call 1-877-276-7882.
They can help you get competitive rates and coverage not only for your home and vehicle, but also on things like RVs, ATVs, boats, motorcycles, and even life, disability and umbrella insurance.
***Insurance products are not NCUA insured, not credit union guaranteed and, in the case of life insurance, may lose value.
