Why are insurance rates increasing in Richmond, VA? Storms throughout the country, low interest rates and increased repair costs are putting a lot of pressure on insurance companies.
Tornados, hurricanes, wild fires and strong thunder storms have caused severe damage throughout the country. Even though this damage did not happen in Richmond, insurance companies draw from the same pot of money. It doesn’t seem fair but it’s the concept of insurance- spread around risk to off-set major financial loss. Would you rather pay an extra $300 a year or $300,000?
Insurance companies are required to invest in fixed assets. Because interest rates have been low for a long period of time, insurance companies are not able to off-set losses with investment gains.
What used to be a $600 repair bill for a bumper, is now $1,500. Medical bills have also increased at an alarming rate. An ambulance ride alone can cost $1,000, not too mention an over night stay in the emergency room.
Instead of looking for the least expensive insurance policy, I encourage you encourage you to look for the best value. Does your policy provide the coverage you need at a fair price? Are you receiving all the discounts you’re entitled to? Do you have an agent you can call to review your policy?
Everyone wants to pay less for insurance, but the reality is if your rate is currently stable or increasing slightly then you are better off than most.