Many Americans Are Concerned About The Impact Of Inflation On Insurance Coverage – How To Avoid Underinsurance – Fox Business | CarTailz

According to a recent survey, 60% of home/auto insurance owners worry about not having enough insurance. (one)

According to a recent survey, many US consumers are concerned about the impact that inflation and rising costs could have on their homeowners and auto insurance coverage.

According to a survey by VIU by HUB, a digital insurance brokerage platform, sixty percent of home and/or auto insurance owners said they were concerned about under-insurance. Being underinsured means having a policy that only covers a portion of the losses in a claim, often due to exclusions or coverage limits.

Of those survey respondents who made a claim on their insurance policy in the past five years, 40% said they had an event where their policy did not cover their claim as expected.

“Consumers are rightly concerned about the possibility of coverage gaps as the economy is changing rapidly and many people are unknowingly underinsured,” said Bryan Davis, EVP and head of VIU, in the company’s report. “Education and insight can help allay these concerns, while expert advice can ensure ideal coverage and protection.”

When you’re looking for the right auto insurance policy to suit your needs, Credible’s marketplace can help you compare different plans and lenders without compromising your credit score.

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Consumers could be exposed to the risk of high out-of-pocket expenses

Inflation is at a record-breaking level and has impacted prices across the US economy. According to the survey, this means increased costs for replacement and repair for the insurance company. Policyholders could face higher out-of-pocket expenses if their coverage has not been increased to reflect higher replacement values, the survey said.

Most consumers (91%) said they would be concerned if they found out they didn’t have enough homeowners and/or car insurance to cover an event. Additionally, 29% said they worried about taking on debt to replace or repair their car or home if insurance isn’t enough to cover a claim.

And those costs can be significant, according to Angel Conlin, chief insurance officer at Kin Insurance.

“You could insure your house for $300,000 only to find out it’s $400,000 to rebuild after a total loss,” Conlin said. “Homeowners who are underinsured may have to pay tens – maybe even hundreds of thousands of dollars – out of their own pockets.”

Comparing multiple insurance companies can help you find the best rate for your home or car insurance. You can visit Credible to find personalized insurance quotes and choose the best option for you.

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In this way, policyholders can avoid underinsurance, says expert

Survey respondents cited a lack of understanding of how to choose the right insurance as one reason they were concerned about inadequate insurance coverage.

More than 4 in 5 policyholders (81%) said they wanted to learn more about or better understand the features of their homeowners or auto insurance policies, the survey found.

Policyholders should understand the type of hazard they are insuring against to assess the risks of a coverage gap, said Evan Walker, an attorney specializing in personal injury and property claims.

“For example, if the risk is liability … then your personal property is at risk if you are sued and a judgment is reached against you,” Walker said. “However, if the hazard is water, wind or fire, you risk not having enough money to repair the damage to your property.”

The best course of action against the risk of under-insurance is over-insurance, Walker advised.

“I would also consider an umbrella policy,” Walker continued. “For me, it’s better to have too much insurance than too little. From what I’ve seen, any money saved by getting lower limits is a dime-wise, pound-stupid approach. If someone is interested in saving money when it comes to insurance, a better approach might be to set higher deductible limits.”

If you are looking for new insurance, you can visit Credible’s marketplace to compare different premiums from multiple insurance companies and find the best option for you.

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