Iowans have seen an increase in their insurance premiums and a Consumer Advocacy Officer for the Iowa Insurance Division says multiple factors explain why.
Sonya Sellmeyer told Ottumwa Radio News extreme weather is a key facet.
“As you may know, the derecho caused a lot of damage and that was in 2020. That damage alone was 1.6 billion dollars. So we’ve had those catastrophic weather events that we’ve had several of this year.” Sonya Sellmeyer, Consumer Advocacy Officer for the Iowa Insurance Divison
The Hawkeye State has seen 124 tornadoes so far in 2024, already among the top ten years on record. A derecho also ripped through Iowa in May.
Sellmeyer says rising costs and a shrinking pool of insurance companies willing to continue operating in the state are also causing insurance premiums to soar.
“We have had a reduction in companies writing in the state of Iowa or they’re not writing policies for riskier properties.” Sonya Sellmeyer, Consumer Advocacy Officer for the Iowa Insurance Divison
So how can Iowans keep their insurance premiums affordable?
“I think the number one thing to do is look to see if maybe you can raise your deductible on your policies. That will usually interpret to a lower premium.” Sonya Sellmeyer, Consumer Advocacy Officer for the Iowa Insurance Divison
Sellmeyer stresses that you must make sure you can afford the higher deductible and have an emergency fund available. Other tips include practicing safe driving habits, ensuring your vehicle has safety devices (anti-lock brakes, airbags, anti-theft device, etc.), and monitoring your credit score to keep it in good standing.
According to the Insurance Information Institute, Iowa had the third least expensive auto insurance in 2021 with an average expenditure of $725.30. Still, the U.S. Department of Labor states auto insurance rates rose 19.5% over the last year.
