Reevaluating Monthly Expenses like
Insurance is Crucial to Savings
LOS
ANGELES, March 29, 2024 /PRNewswire/ -- Finances
are consistently a top concern for many Americans, with "saving
money" among the top 10 most common New Year's resolutions. This
year, Americans are more concerned than ever due to the uncertainty
created by high inflation, rising interest rates, lack of income
growth and dwindling savings. According to investment research site
YCharts, the U.S. personal savings rate for January 2024 was 3.8% versus 19.3% in
January 2021, a 15.5% drop in just
three years.
Here are some interesting stats on the state of the U.S.
economy:
- Per Gallup, 45% of respondents
rate the American economy as poor, with 63% saying it is getting
worse, not better
- 63% of respondents tell Gallup that high prices pose a severe
or moderate financial hardship
- A 2023 survey conducted by Payroll.org highlighted that 78% of
Americans live paycheck to paycheck, a 6% increase from the
previous year. In other words, more than three-quarters of
Americans struggle to save or invest after paying for their monthly
expenses
- Similarly, a 2023 Forbes Advisor survey revealed that nearly
70% of respondents either identified as living paycheck to paycheck
(40%) or — even more concerning — reported that their income
doesn't even cover their standard expenses (29%)
- The Labor Department reported that in October of 2023,
nearly 8.4 million people held multiple jobs — the
highest level since July 2019, before
the COVID-19 pandemic began
- According to the Federal Reserve Bank of New York, U.S. consumer credit card debt
topped $1.1 trillion in the last
quarter of 2023
The economy and job markets remain in a state of constant flux,
which is causing many families to worry about their ability to pay
an unexpected bill, continue to pay off student loans, mortgages or
credit card debt, or save money for the future.
"Saving money is more than just putting spare change into a
coffee can, or simply ordering takeout less often," said
Sam Jarman, Financial Expert and
Mercury Content Partner. "Sure, those things can add up over
time, but people may find that their greatest savings can come from
taking a look at the necessary expenses they pay for every month,
such as insurance."
Jarman recommends these four tips to help protect your finances
in the coming year:
- Check your auto insurance coverages. There's no
reason to pay for more coverage than you need, but being
underinsured can leave you exposed. "The cost of repairs after a
collision have grown in recent years, both as a result of more
crossovers and SUVs on the road, and more technologically advanced
vehicles," said Jarman. "Beyond paying for more expensive repairs
if your insurance doesn't cover it, if you're underinsured, you may
also be responsible for paying out of pocket for medical bills,
which could potentially devastate savings for a down payment on a
house, your child's college tuition or a future vacation. It's
vitally important to make sure you have the right amount of auto
insurance coverage to protect against unforeseen events."
- Know what your homeowners insurance covers. First and
foremost, be sure to read your homeowners insurance policy so
you're clear about what it does and doesn't cover. It's a good idea
to check in with your agent each year to ensure you have adequate
coverage, especially if you've made renovations, own collectible or
valuable items, or live in an area that's prone to flooding or
earthquakes, as standard homeowners insurance policies typically
don't cover these situations. Also, maintain a home inventory to
make sure to have an accurate record of your belongings and
property.
- Be aware of potential gaps in coverage. A standard
homeowners insurance policy often doesn't cover mechanical failures
to your home's appliances, HVAC or other essential systems, nor
does it cover a break to service lines on your property that supply
your home with electricity, gas or sewer functions. In either of
these scenarios, this means you would be responsible for writing a
big check to a repair company or having to purchase a pricy
replacement. However, adding home systems protection and service
line protection endorsements can help provide coverage for costly
repairs and replacements, saving you both money and peace of mind.
Pennies spent now can save you dollars down the road.
- Regularly shop for the best coverage and price.
Insurance prices can vary significantly from company to company, so
it's a good idea to take a few minutes to see if you're getting a
good deal. Shop around at least once a year — making sure to look
for the exact same coverage limits — to see if you can find a more
affordable rate. Additionally, check what discounts your carrier
may offer. You may qualify for a discount you didn't know
existed.
"Often, regional insurers like Mercury Insurance are more
attuned to their policyholders' needs and can offer better rates,"
Jarman added. "For example, the California Department of Insurance
found that Mercury auto insurance policyholders save an average of
$1008, which can go a long way in
feeling more secure in your savings."
The most effective way to make sure your finances are minimally
impacted by insurance costs in 2024 is to speak to an independent
insurance agent. They can help make sure you have the proper amount
and type of coverage to keep yourself, your family and property
protected.
About Mercury Insurance
Mercury Insurance (NYSE: MCY) is a multiple-line insurance
carrier predominantly offering personal auto, homeowners and
renters insurance through a network of independent agents in
Arizona, California, Georgia, Illinois, Nevada, New
Jersey, New York,
Oklahoma, Texas and Virginia, as well as auto insurance in
Florida. Mercury writes other
lines of insurance in various states, including commercial,
business owners and business auto, landlord, home-sharing,
ride-hailing and mechanical protection insurance.
Since 1962, Mercury has provided customers with tremendous value
for their insurance dollar by pairing ultra-competitive rates with
excellent customer service. Mercury has earned "A" ratings from
A.M. Best and Fitch, as well as "Best Auto Insurance Company"
designations from Forbes and Insure.com. For more information visit
www.MercuryInsurance.com or follow the company on Twitter or
Facebook.
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SOURCE Mercury Insurance