Drivers in the North Country region of New York are feeling the pinch of rising auto insurance rates, with no end in sight to the trend. According to a March report by the Associated Press, drivers across the country have seen a 22% increase in auto insurance rates compared to a year ago.
For residents like Veronica Swem of Watertown, the increased costs have been a significant burden. “It’s been kind of a burden for me because I live alone and I pay bills by myself and my income is limited,” she said.
Christine Stark of Cape Vincent, who is retired and on a fixed income, expressed concern about the rising costs. “There’s a natural concern. I am retired and on a fixed income. I can’t really afford too many jumps in many areas and we’ve already seen our food prices go up,” she said.
David Kirst, an insurance sales manager at AAA, attributes the rate hikes to insurance companies’ response to the COVID-19 pandemic. “It just takes a while for some of those rate approvals to go through so that’s why over the last two years you have seen a lot of those increases,” he explained.
While insurance rates have risen, AAA suggests that customers explore alternative solutions to save money. “Take a look around. See if there are any options out there. Some insurance carriers have been taking significantly more rates than others. You want to maybe see what else is available out there for you,” Kirst advised.
Despite the immediate impact on customers’ wallets, Kirst believes the rate increases are necessary to ensure insurance carriers have sufficient reserves to cover claims. “It does hurt everyone’s wallet when you do see these rate increases, but there is a reason for that. We want to make sure that our insurance carriers do have enough money in reserves to cover up those claims,” he said.
Looking ahead, Kirst expects the increased rates to stabilize, with prices remaining stagnant by next year. However, for now, North Country drivers must navigate the challenges posed by the surging auto insurance costs.
