Parcel insurance rates are on the rise, and they have been for years. In fact, in the past five years, parcel insurance rates have increased 38%. That’s a big number. And when compared to price changes of some common household items, the increase seems even bigger.
Over the past five years, the average price of a new car in the US rose from $29,217 to $31,25. That’s only a 7% increase. If the average price of a car had risen at the same rate parcel insurance has, the car would cost $40,319, a difference of over $9,000.
Even the gas our cars run on has only incrementally increased over the last five years. From 2010 to 2014, average national gas prices rose from $2.73 to $2.75, which only amounted to a .73% price increase. Again, if the average price of gas had risen as much as parcel insurance rates had, you’d have paid $3.77 for a gallon of gas, almost a dollar more.
It doesn’t look like the carriers’ parcel insurance rates will stop increasing anytime soon. You can combat these ever-inflating prices by using a 3rd party parcel insurance provider.
Lojistic has helped our clients save 50-92% on their shipping insurance. Underwritten by Lloyd’s of London, our insurance solution offers comprehensive coverage, an expedited claims process, and centralized visibility and reporting. Check our Facebook, Twitter, and LinkedIn next week for more price increase comparisons.