Rising Premiums Do Not Curtail Insurance Spending: Survey

January 14, 2013

More than a third of Americans spent more on insurance during the past year, according to a new survey.

Some 37 percent of people responding to the survey spent more on insurance over the past year while only 7 percent spent less, according to new research by Bankrate.com. The remaining respondents either spent about the same (52 percent) or didn’t know/refused to answer (4 percent).

Of those who spent more, 62 percent said their spending went up because of rising premiums.

The next most popular response to increased insurance spending resulted from the purchase of a new home, car, boat or recreational vehicle (12 percent). The results reflect Americans’ total spending on all types of insurance (auto, homeowners, renters, health, life, etc.).

The survey revealed that 37 percent spent more overall for all kinds of insurance, including homeowners, renters, auto, life and health coverage, while 52 percent spent about the same, and just 7 percent saw their insurance bill decrease.

“We continue to view rising expenses and stagnant wages as a key financial hurdle for American households,” said Doug Whiteman, insurance analyst, Bankrate.com. “But consumers shouldn’t accept rising insurance premiums without a fight. Compare quotes from at least three other companies, investigate all possible discounts and don’t be afraid to ask your current insurer for a discount. You may be able to get a better deal.”

PSRAI obtained telephone interviews with a nationally representative sample of 1,003 adults living in the continental United States. Telephone interviews were conducted by landline (501) and cell phone (502, including 241 without a landline phone). Interviews were done in English by Princeton Data Source from January 3-6, 2013. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 3.6 percentage points.

Source: Bankrate.com

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