Driving around Delaware means a lot of beautiful views, from the beaches of Rehoboth to the rolling hills of northern Delaware. But sometimes insurance premiums can feel like a speed bump on our financial journey– and for some Delaware drivers, it’s going to get a bit worse.
What’s Happening?
Progressive Insurance, the state’s 2nd largest auto insurance carrier, recently implemented a 7.6% rate increase for its Delaware customers. That means that any policy renewals after April 4th may come with a slight uptick in premiums.
Since over 15% of Delaware drivers are insured with Progressive, this change is wide-reaching. And it could also take a sizable bite out of your budget, as the average policy is estimated to increase by $179.
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Understanding the “Why” Behind Rate Increases
Before we dive into how to navigate this change, let’s understand why insurance companies adjust their rates. Several factors contribute to these fluctuations, including:
- Increased Accident Claims: A higher number of accidents leads to increased payouts for insurance companies.
- Rising Medical Costs: The cost of treating injuries sustained in accidents has been steadily increasing.
- Inflation: The rising cost of goods and services, including labor and materials, affects insurance companies’ expenses.
- Technology Advancements: Newer cars with advanced safety features and complex technology often require more expensive repairs.
Taking Control of Your Car Insurance Costs
While you can’t control the broader economic factors, you can take proactive steps to manage your car insurance costs:
1. Become a Savvy Shopper:
- Compare quotes: Don’t settle for your current rate. Get quotes from multiple insurers to compare prices and coverage options. Check out our free shopping tool to get started.
- Time your search strategically: With the Progressive rate increase effective for renewals already in effect, now is the perfect time to explore other options. Shopping around before your renewal date gives you the flexibility to switch to a more competitive policy without any gaps in coverage.
2. Unlock Hidden Savings
Many drivers overlook potential discounts that can significantly reduce their premiums:
- Bundle and save: Combining your car insurance with other policies like home, renters, or motorcycle insurance can often result in substantial discounts.
- Good driver rewards: Maintaining a clean driving record with no accidents or traffic violations is a surefire way to earn lower rates.
- Safety first: Vehicles equipped with safety features like anti-lock brakes, airbags, and anti-theft systems may qualify for discounts.
- Low mileage perks: If you drive less than the average driver, inquire about low-mileage discounts.
- Student success: Good students often qualify for discounts.
- Membership and affiliation discounts: Check if your membership in professional organizations, alumni associations, or employer groups entitles you to discounts.
3. Optimize Your Coverage:
- Adjust your deductible: Increasing your deductible (the amount you pay out-of-pocket before your insurance kicks in) will typically lower your premiums. However, ensure you can comfortably afford the higher deductible in case of an accident.
- Evaluate comprehensive and collision coverage: If you drive an older vehicle with a lower market value, reconsidering comprehensive and collision coverage (which covers damage to your vehicle) might be financially prudent.
- Liability coverage: Strike the right balance: While saving on premiums is important, ensure your liability coverage (which pays for damages you cause to others) is adequate to protect your assets.
- Consider usage-based insurance (UBI): Some insurers offer UBI programs that track your driving behavior using a mobile app or device. Safe driving habits can earn you discounts.
You’re not imagining it— car insurance has been getting more expensive, and not just with Progressive. Across the industry, insurers are adjusting premiums to account for a mix of economic and behavioral trends:
- Increased accident claims: More accidents lead to higher payouts for insurance companies.
- Rising medical costs: The cost of treating injuries sustained in accidents has been increasing.
- Inflation: The rising cost of goods and services, including labor and materials, affects insurance companies’ expenses.
- Technology advancements: Newer cars with advanced safety features and technology can be more expensive to repair.
Stay Ahead of the Curve on Car Insurance
This rate increase isn’t just major news for Progressive customers; it also serves as a reminder to review your car insurance coverage regularly– regardless of your carrier. By actively comparing quotes, exploring discounts, and optimizing your policy, you can navigate the ever-changing insurance landscape and find the best coverage at the most competitive price.
Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.
