Tennessee’s got those scenic drives, from the Smoky Mountains to the heart of Nashville. But if you’re an Erie Insurance customer, you might notice a slight detour in your budget soon.
What’s Happening?
Erie Insurance has enacted a 7.5% increase in its auto insurance premiums for Tennessee residents. This change will affect policy renewals starting May 1, impacting roughly 113,869 policyholders. After the change goes into effect, the average driver will see their policy go up $125.
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Why Are Insurance Rates Increasing?
Several elements contribute to the rising cost of auto insurance:
- Increased claims costs: When insurance companies pay more in claims, they often raise premiums to offset these expenses. Factors such as rising medical costs, more expensive car repairs, and an increase in accidents all contribute to these higher costs.
- Inflation: The overall rise in the cost of goods and services directly impacts insurance rates. As inflation drives up the cost of vehicle repairs and replacement parts, insurers adjust premiums accordingly.
- Catastrophic events: Natural disasters like hurricanes, floods, and wildfires can cause extensive damage to vehicles and properties. When insurers face substantial losses from these events, they may need to raise rates to recover their costs.
- Technological advancements: While modern vehicle technology enhances safety and convenience, it also increases repair costs. The growing reliance on advanced electronics and specialized parts can lead to more expensive claims.
- Legal and regulatory changes: Updates to state or federal laws, such as revised coverage requirements or minimum liability limits, can also affect insurance premiums.
What to Do If You’re Facing a Rate Increase
If you’re worried about rising auto insurance costs, consider these strategies:
- Shop around for the best rates: Don’t settle for your current insurer’s rate without comparing quotes from multiple providers. You may find a better deal elsewhere.
- Increase your deductible: Choosing a higher deductible means paying more out of pocket for an accident, but it can significantly lower your premium.
- Improve your driving record: Maintaining a clean driving history by avoiding traffic violations and accidents can help you qualify for discounts.
- Take a defensive driving course: Completing a defensive driving course can improve your skills and make you eligible for insurance discounts.
- Bundle your policies: If you have multiple insurance policies, such as home or renters insurance, bundling them with the same provider can lead to cost savings.
- Ask about available discounts: Many insurers offer discounts for safe drivers, good students, and members of certain organizations.
Additional Tips for Saving on Car Insurance
If your current insurer has raised your rates, here are some options to consider:
Review your coverage: Assess your policy to determine if you’re paying for coverage you don’t need. Adjusting coverage limits or deductibles could help lower your premium.
Explore alternative insurance options: Comparing quotes from different insurers may help you find a more competitive rate that better suits your driving profile. Check out our free shopping tool to see how much you can save.
Consider usage-based insurance: Some insurers offer programs that track your driving habits with telematics devices. If you’re a safe driver, you may qualify for substantial savings.
Don’t Overpay for Auto Insurance
Rising auto insurance rates can be a significant financial burden for drivers. However, by understanding the factors that influence your rates and implementing the strategies outlined above, you can take control of your insurance costs and find the best coverage at a price that fits your budget.
Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.
