690 words | Read time: 6 minutes
Author: Rita Ross, Owner & Principal Agent, Ross Insurance
Edited by: Diego Maldonado
Just Doing My Job!
As an insurance professional, I make it my business to stay on top of legal and cultural trends within the insurance industry. Recently, I read a great article in Bankrate that simply read, “Auto insurance rates are increasing in 2022. Here’s how to prepare.” The article reminds readers of the many factors that affect car insurance rates, such as; policyholder age and gender, accident and traffic violation history, policyholder residence (some states), and frequently revised insurance laws. These are things that have been and will always be drivers of rate changes in the insurance industry, but Ross Insurance is committed to educating its customers – so I’m writing this post to address several things the Bankrate article mentions that many drivers and policyholders do not think about.
Can’t Find It vs Can’t Afford It
Anyone who buys groceries, dines at a restaurant, or buys clothes or gasoline, knows that inflation is stubborn and it is very real. Moreover, if you watch the nightly news or have attempted to purchase a new car or electronic device lately, you’ve undoubtedly heard about supply chain disruptions and the impact this phenomenon is having on all types of goods and services. In her article for Bankrate, Cate Deventer, touches on the impact of inflation and supply chain disruptions, and the curious role of the recent global COVID-19 pandemic. Cate’s insight is thought-provoking and her assertions are worthy of a read. Here is a LINK to the Bankrate article that inspired this post.
A Warning to My Customers
For every action, there is a reaction. I live in a state where the cost of living is extremely high and I sympathize with teens and young adults who aggressively fight for higher wages. Poverty wages are very real in Maryland and Washington, DC, and so-called “living wages” will be debated about forever, while the people who are affected continue to suffer. With this said, I am concerned that many people who demand wages to be set at minimums hovering around fifteen to twenty dollars per hour, do not realize that this increase is merely symbolic. I say this because constants such as inflation and classism will always level things out and the disenfranchised will continue to suffer.
But Why Should I Care About Inflation and Semiconductor Shortages?
Ross Insurance Agency proudly educates and writes policies for customers of all races and creeds, but there are hidden messages in the Bankrate article that speak to certain demographics. First, as a for-profit industry, insurance companies must adjust rates when economics and emerging automobile technologies force those rate increases. Secondly, policyholder behavior becomes the only way to ensure that certain racial or other at-risk demographic groups are not priced out of getting car insurance altogether.
If you own a car and have an insurance policy, you should care about inflation, corporate greed, redlining, supply chain disruptions, labor shortages and increased repair costs of newer vehicles, because no amount of protesting or complaining can reduce the impact these things have on rising insurance costs. The only thing that you, as a consumer of automobile insurance products can do, is to be a more conscientious policyholder, reject the advice of ambulance chasers, and stop filing frivolous claims and lawsuits.
Policyholder Behavior Matters Most
As your agent, it is my job to help you understand your existing policy. On my agency website, I invite you to use me and my experienced staff as your ultimate insurance resource. We can assist you in finding a new carrier if there are nuisance circumstances or personal concerns you may have with your current carrier. And remember, my staff and I are not exempt from the impact of inflation and the cost of insurance. Yes, even insurance agents and industry professionals are required to have car insurance. For this reason, we understand the attractiveness of discounts and comparing coverage and quoted premiums. Ross Insurance will do what we can to lessen the burden of increased car insurance rates, but your behavior as a policyholder is really what matters most.