So, you've just received your bill for the new auto policy period. As you curl back the envelope (enter in suspenseful music) you start to wonder if you even want to look. You know you've just had a car accident last month and received a ticket for speeding the past year. You pull that insurance bill out and see....wait for it....the same rate. You think to yourself, how is that possible? Well, remember that day you went to your new agent and he told you that you had the option of getting rate protection on your auto insurance? He just saved you from a 10%-20% increase on your auto insurance rates. Do you want more information on this amazing feature? Click HERE and send me a request.
Now, most insurance companies don't have rate protection, and because of that, you will see an average of 1%-5% rate increases each year and up to 20% if you had a bad driving year. Insurance companies don't do this because they are trying to make more money off of you, they do it so that they can pay for claims. The way they see it, the more driving mistakes you make the better chance there is of you getting into an accident. Rate increases also come when the company has more claims than they can afford, leaving their loss ratio in the red zone. When this happens, insurance companies will compensate for their losses by increasing the insurance rates so that they can pay off the claims for the next year.
Now, you may wonder, how are insurance rates determined? Well there is a long list of reasons that I will go over in my next blog entry. But, keep in mind that each individual is rated by the same rating factors. You'll learn more about that later. Moving on...
See the following list for reasons why insurance rates increase or decrease each year:
-# of Natural disasters
-# of Accidents
-# of Thefts
-$ of Claims
-loss ratio for company
-Expense costs for company...see description of this below.
Business expense costs for companies are most definitely a factor when determining rates. Why? Well, most companies have formulas for how much money they spend in each area of business. Remember, insurance companies are businesses and all businesses have expenses. Don't be hard on them, they have to bring in more clients in order to make more money to make your claims process simpler....To make paying you off on a claim quicker and more seamless. Now, most companies that are well known have fairly high costs because they market themselves frequently. Companies you've never heard of, don't like to spend money on marketing because they want to be more efficient in other ways that help their current clients. There is no such thing as a bad company trying to steal your money, there are just different business strategies. IN all aspects of insurance, your coverages will always serve their purpose when you need them to.
How can I find better prices for insurance? Well, I'm sure you see "answers" all over the internet. Don't be fooled to thinking the least expensive policy is the best one for you. Sometimes those inexpensive policies end up leaving you with much less than what you need. If you aren't sure about your coverages...please, don't hesitate to email me and I will help you understand your policy and how it measures up to the standard.
That's it for today. Remember, rates will always fluctuate higher or lower based on each different companies formula each year. Don't be fooled by cheap insurance. And if you ever have questions, I'm always here for you.
Now, most insurance companies don't have rate protection, and because of that, you will see an average of 1%-5% rate increases each year and up to 20% if you had a bad driving year. Insurance companies don't do this because they are trying to make more money off of you, they do it so that they can pay for claims. The way they see it, the more driving mistakes you make the better chance there is of you getting into an accident. Rate increases also come when the company has more claims than they can afford, leaving their loss ratio in the red zone. When this happens, insurance companies will compensate for their losses by increasing the insurance rates so that they can pay off the claims for the next year.
Now, you may wonder, how are insurance rates determined? Well there is a long list of reasons that I will go over in my next blog entry. But, keep in mind that each individual is rated by the same rating factors. You'll learn more about that later. Moving on...
See the following list for reasons why insurance rates increase or decrease each year:
-# of Natural disasters
-# of Accidents
-# of Thefts
-$ of Claims
-loss ratio for company
-Expense costs for company...see description of this below.
Business expense costs for companies are most definitely a factor when determining rates. Why? Well, most companies have formulas for how much money they spend in each area of business. Remember, insurance companies are businesses and all businesses have expenses. Don't be hard on them, they have to bring in more clients in order to make more money to make your claims process simpler....To make paying you off on a claim quicker and more seamless. Now, most companies that are well known have fairly high costs because they market themselves frequently. Companies you've never heard of, don't like to spend money on marketing because they want to be more efficient in other ways that help their current clients. There is no such thing as a bad company trying to steal your money, there are just different business strategies. IN all aspects of insurance, your coverages will always serve their purpose when you need them to.
How can I find better prices for insurance? Well, I'm sure you see "answers" all over the internet. Don't be fooled to thinking the least expensive policy is the best one for you. Sometimes those inexpensive policies end up leaving you with much less than what you need. If you aren't sure about your coverages...please, don't hesitate to email me and I will help you understand your policy and how it measures up to the standard.
That's it for today. Remember, rates will always fluctuate higher or lower based on each different companies formula each year. Don't be fooled by cheap insurance. And if you ever have questions, I'm always here for you.
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