Today's Date: August 5, 2021
Ontario Bioscience Innovation Organization Supports Advancement of Women in the Business of Health Science With Six-Day Bootcamp   •   Stryker Hits Home Run at TD Bank Ballpark With Its Mako SmartRobotics™ Technology   •   Swvl To Enhance Board With Appointment Of Three Highly Accomplished Women & Tech Leaders   •   Synaptogenix Signs Memorandum Of Understanding with Nemours A.I. DuPont Hospital to Initiate Trial Using Bryostatin, Under Orpha   •   Vericast Back-to-School Survey Finds Parents Eager to Spend   •   Virios Therapeutics to Report Second Quarter 2021 Financial Results and Provide Corporate Update on Thursday, August 12, 2021   •   Texas Original Compassionate Cultivation Drives Over 180,000 Miles to Deliver Medical Cannabis Across Texas   •   Essilor Vision Foundation and Vision Source® Announce Charitable Partnership   •   Regions Next Step Expands Financial Wellness Offerings for Students via iGrad and WeAreTeachers Platforms   •   HITN, Teachley and Sirius Thinking to Produce Game-Changing Narratives for Bilingual Math Education   •   Greenwood Launches Greenwood Studio to Produce Finance and Business Shows and Podcasts for Black and Latino Audience   •   General Assembly Pizza Launches New Website, Expanded eCommerce Offerings   •   Financial support to three organizations serving Veterans and their families   •   Majority of Parents Say COVID-19 Child Care Duties Have Hurt Their Careers   •   MIAMI Chairman of the Board Jennifer Wollmann Named Among HousingWire's 2021 Women of Influence   •   CATMEDIA Adds Another Silver Telly Award to Its Trophy Case   •   Proud Moments ABA recognized with Two-Year BHCOE Accreditation   •   Mountain America's Employee Match Program Supports Operation Warm, Providing Over 1,000 Coats and Shoes   •   HempFusion’s New Gummy Line Ships to Food, Drug and Mass Convenience Stores This Month, Available Now Via Ecommerce   •   Sagent Partners With National Association Of Minority Mortgage Bankers Of America (NAMMBA) to Further Diversity in Mortgage Serv
Bookmark and Share

New Report Reveals Rising Home Insurance Premiums Disproportionately Burden Seniors and Homeowners With Low Credit Scores

New Report Reveals Rising Home Insurance Premiums Disproportionately Burden Seniors and Homeowners With Low Credit Scores

PR Newswire

COLUMBUS, Ohio, July 22, 2021 /PRNewswire/ -- Matic, a leading insurtech platform, today unveiled its mid-year premium trends report, highlighting insights from 36 property and casualty insurance carriers. The results reveal that increasing home insurance premiums disproportionately impact homeowners with FICO scores below 580. Additionally, while senior homeowners do not have the highest average premiums compared to other age groups, they are the most susceptible to overpaying and have a significant opportunity to save.

Since their go-to-market launch in 2017, Matic has been collecting and analyzing insights from their growing digital ecosystem of carriers covering home, auto, and other personal lines of insurance. According to Matic's 2021 mid-year findings, which reviews trends from 45,000 policies and 3.2 million quotes, home insurance premiums are on the rise nationally and grew an average of 4% year-over-year*. Homeowners with a FICO score below 580 experienced the largest increase in rising insurance premiums reaching 6.4%, impacting homeowners by an extra $85 per year on average for a 12-month policy.

Rising Coverage A, or dwelling coverage, correlates to the overall increase in home insurance premiums. On average, Coverage A increased 6.3% year-over-year; however, homeowners with FICO scores below 580 saw the steepest increase at 9%.

FICO Score

Avg Premium

2019/20

Avg Premium

2020/21

% Change

Avg Cov A

2019/20

Avg Cov A

2020/21

% Change

<580

$1,327

$1,412

6.4%

$253,079

$275,819

9.0%

580-669

$1,237

$1,304

5.4%

$267,207

$278,197

4.1%

670-739

$1,164

$1,208

3.8%

$291,349

$306,542

5.2%

740-799

$1,082

$1,133

4.7%

$315,488

$326,601

3.5%

>800

$1,061

$1,098

3.5%

$341,425

$356,236

4.3%

"In most states, an insurance score, which is partially driven by a credit rating, represents the probability of a claim being filed, and affects the premium a homeowner will pay for coverage," said Ben Madick, co-founder and CEO of Matic Insurance. "The housing market, the cost of materials, and the cost of labor were on the rise even before COVID-19. We're now seeing those increases reflected in the estimated replacement cost of the home (Coverage A), which ultimately drive increases in insurance premiums, among other factors. While homeowners with lower FICO scores experienced a disproportionate increase, they are receiving better coverage and the gap between premiums and Coverage A is closing."

Another key finding from the study revealed that homeowners over the age of 63 are the most susceptible to overpaying for home insurance. According to Matic's data, while average premiums tend to be the highest for those between 43 and 55 years old, premiums for seniors fail to drop proportionately. The data suggests seniors are overpaying due to not regularly checking their policies and annual premium increases adding up over time. Matic found homeowners over 63 saved an average of $751 annually simply by monitoring, reviewing, and adjusting their insurance policy.

Age Bucket

Avg. Premium 2020/21

Avg. Cov A 2020/21

Avg. Savings 2020/21

<27

$919

$206,747

$329

27-34

$1,047

$259,399

$389

35-42

$1,133

$299,368

$454

43-55

$1,243

$319,186

$625

56-62

$1,221

$313,433

$573

>63

$1,183

$298,888

$751

"Many factors contribute to finding extensive savings. Home improvements and bundling auto might play a role, but the most common occurrence is from a customer that has lived in the same house for over 20 years," said Madick. "Even without claims, a homeowner will likely experience a 3-4% increase in premiums each year. Over time, that increase is not insignificant."

Industry studies have shown 40% of homeowners have not reviewed their policy within the last two years. Periodic monitoring can help homeowners keep a pulse on their rate and changing coverage needs.

"Matic has always been an unbiased platform and we believe insurance should be transparent for all homeowners," said Madick. "We created RateReview™, an insurance monitoring service, to help homeowners avoid overpayment and ensure they have the right policy."

Matic's proprietary insurance technology allows home and auto owners to shop online or work directly with a licensed advisor. With coverage in all 50 states and over 30 A-rated carriers available through their marketplace, Matic provides comprehensive property and casualty insurance for consumers beyond home and auto, such as umbrella, flood, earthquake, RV, motorcycle, and more.

*Methodology: Home insurance premiums and Coverage A by FICO are an average from a random sample of 45,000 policies and 3.2 million quotes analyzed from June 1, 2019 through May 31, 2020 and June 1, 2020 through May 31, 2021. Savings by age is based on the difference between current policy and new policy sold between June 1, 2020 through May 31, 2021.

About Matic

Since 2014, Matic has changed the landscape of the insurtech industry by integrating insurance within the home and auto ownership experience. Today, Matic's digital insurance marketplace has over 30 A-rated home and auto carriers, as well as distribution partners in industries ranging from mortgage origination and servicing to banking, real estate, and personal finance. With a single-minded focus on advocating for policyholders, Matic has created an effortless and transparent comparison-shopping process, saving customers days of work and over 30% in premiums each year. For more information, visit matic.com.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/new-report-reveals-rising-home-insurance-premiums-disproportionately-burden-seniors-and-homeowners-with-low-credit-scores-301339006.html

SOURCE Matic



Back to top
| Back to home page
Video

White House Live Stream
LIVE VIDEO EVERY SATURDAY
alsharpton Rev. Al Sharpton
9 to 11 am EST
jjackson Rev. Jesse Jackson
10 to noon CST


Video

LIVE BROADCASTS
Sounds Make the News ®
WAOK-Urban
Atlanta - WAOK-Urban
KPFA-Progressive
Berkley / San Francisco - KPFA-Progressive
WVON-Urban
Chicago - WVON-Urban
KJLH - Urban
Los Angeles - KJLH - Urban
WKDM-Mandarin Chinese
New York - WKDM-Mandarin Chinese
WADO-Spanish
New York - WADO-Spanish
WBAI - Progressive
New York - WBAI - Progressive
WOL-Urban
Washington - WOL-Urban

Listen to United Natiosns News