For Pennsylvania drivers, navigating the costs of car insurance is a key part of managing a household budget. That’s why any news of a rate adjustment is worth noting. Unfortunately, there’s an upcoming increase set to impact Plymouth Rock customers across the state later this month.
What’s Happening?
Plymouth Rock was recently approved to increase auto insurance rates by an average of 5% effective July 20. This adjustment is estimated to raise the total annual premium by nearly $1.5 million, or roughly $110 for the average policyholder.
News of an increase is never great to hear, especially when it’s impacting your policy. But regardless of your situation, this is the perfect trigger to review your coverage, understand your options, and take decisive steps to manage your costs before the new rates are implemented.
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Why Do Car Insurance Rates Go Up?
It can be frustrating to see your premium rise, especially if you have a clean driving record. However, rate adjustments are typically based on broad economic factors and risk assessments that extend beyond any single driver.
Here are the primary reasons why insurers like Plymouth Rock adjust their rates:
The Rising Cost of Repairs: Modern vehicles are safer and more technologically advanced than ever before, but this comes at a cost. A simple fender-bender might now involve repairing or replacing expensive cameras, sensors, and computer systems embedded in bumpers and windshields. According to recent industry data, vehicle repair costs are up over 11% from last year, a major factor driving insurance premiums.
Inflation’s Ripple Effect: General inflation impacts the entire claims process. The cost of raw materials, auto parts, and rental cars has increased. Furthermore, a shortage of skilled automotive technicians has driven up labor rates, making every repair more expensive for insurers to cover.
Increased Accident Frequency: More cars on the road and shifts in driving behaviors can lead to a higher number of accidents. Data since 2020 shows a notable rise in claims related to car crashes. When an insurer’s data projects more frequent or more severe claims in a state like Pennsylvania, they must adjust rates to ensure they have adequate funds to pay for future losses.
Severe Weather Events: Pennsylvania is susceptible to a variety of severe weather, from heavy snow and ice storms to powerful thunderstorms and flooding. A single major weather event can cause widespread vehicle damage, leading to a high volume of comprehensive claims and putting financial pressure on insurers.
Your Action Plan: How to Save on Your Auto Insurance Policy
News of a rate increase should put you in the driver’s seat. Here are concrete steps every Pennsylvania driver can take to find savings and ensure they aren’t overpaying.
1. Re-Quote Your Policy before the Rate Change
This is the most time-sensitive and crucial step. You have a window of opportunity between now and your next renewal to lock in a new policy at today’s rates.
Why it works: Insurance quotes are typically valid for a period of 30 to 60 days. By shopping for and purchasing a new policy before the rate hike takes effect, you can secure your premium for the next six or twelve months, effectively delaying the impact of the increase.
What to do: Don’t wait. Start the process now. Use an online comparison tool to get fresh quotes from a variety of carriers.
2. Shop Around with Other Carriers
Brand loyalty is commendable, but it shouldn’t cost you hundreds of dollars. The insurance market in Pennsylvania is competitive, and the price for the exact same coverage can vary dramatically from one company to another.
Get at least three to five quotes: When it comes to shopping around for insurance, comparison is key. Check out a variety of carriers using a quoting tool. Don’t assume the company that was cheapest last year is still the cheapest today.
Use an independent agent: An independent insurance agent can be a valuable ally, as they can pull quotes from multiple insurance companies at once, saving you time and potentially finding you a better deal.
Compare apples to apples: When you get quotes, ensure that the coverage limits, deductibles, and optional coverages are identical for each one. This is the only way to make a true price comparison.
3. Review and Adjust Your Coverages
A rate change is a perfect time to conduct a “policy check-up” to ensure you’re only paying for the coverage you truly need.
Consider raising your deductibles: Your deductible is the amount you pay out of pocket before your insurance kicks in. By increasing your comprehensive and collision deductibles (for example, from $500 to $1,000), you can significantly lower your premium. Just be sure you have the higher amount saved and accessible in case you need to file a claim.
Evaluate coverage on older vehicles: If you have an older car with a low market value, paying for collision and comprehensive coverage might not be cost-effective. You could be paying more in premiums than the car is actually worth. Use online tools to check your car’s value and do the math.
4. Ask About Every Possible Discount
Insurance companies offer a wide array of discounts, but they often aren’t applied automatically. You have to ask. When speaking with an agent, run through this checklist:
Bundling/Companion Policy: Do you have your auto and home or renters insurance with the same company? This is often the single largest discount available.
Safe Driver: Do you have a clean record with no at-fault accidents or moving violations in the past three to five years?
Good Student: Is there a young driver on your policy with a “B” average or better?
Anti-Theft and Safety Devices: Does your vehicle have features like an alarm, automatic emergency braking, or airbags?
Paid-in-Full: Can you save money by paying your entire premium upfront instead of in monthly installments?
Driver Improvement Courses: For mature drivers (typically 55 and over), completing an approved defensive driving course can earn a discount for several years.
Don’t Overspend on Car Insurance
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