Insurance has always been a challenge. Lately, though, it has been downright difficult.
If you have read any of our recent articles, you know we have talked about changes insurance companies are making that will affect your coverage and premium. It’s hard to keep up with all the changes. Since we wrote our last article, one company issued four agency bulletins with different changes to underwriting guidelines, program changes, and rate increases. To top it off… all companies are doing this.
This is not fun. It’s not fun for you and it’s not fun for us. We understand these premiums just keep getting higher. Unfortunately, the answer is not fun either. The industry is not encouraging people to go rate shopping. As an independent agent, it is difficult to understand this because… that is what we do. We do the coverage and rate shopping for you. Unfortunately, we are not finding any great alternatives.
Companies are “tightening up” on what they will agree to write. If they find any issue with a home, they won’t write coverage. In fact, one company indicated they may write 1 out of 10 BRAND NEW HOMES. So, they may only write 10% of the business being submitted to them. Another problem is, if we write a home with a new company and the owner has a claim in the first few years, the company could potentially non-renew the policy. Now they have a claim on their record and a non-renewal notice. This makes finding a company that will write coverage even more difficult. If you have a history with your home insurance company, you should consider staying where you are.
Auto insurance is also getting really crazy. A new rating system includes rates based on the age, weight, and cost of the vehicle. A new vehicle is going to cost more than an older one because of all the new sensors and safety features. A pickup is heavier than a small car. Therefore, the damage it causes is substantially greater. The higher priced a vehicle, the more it is going to cost for repair/replacement parts.
Now more than ever, it is important to watch driving habits including- speed, cell phone usage, etc. Tickets, accidents, and claims just increase your premiums. New policies are being declined with even a minimal claim activity or driving violations.
Our articles over the last year have not brought a lot of “good news” about the insurance industry. Ultimately it is important to remember that insurance is designed for catastrophic losses. Insurance isn’t for maintenance. Don’t turn in everything. Consider paying for damages that don’t exceed your deductible by more than one or two thousand dollars. Maybe rates would go down or at least level out and maybe the cost of repairs would decrease if everyone paid for some of their own damages.
Contact us to review your coverage and discuss options to try and save some money. Just give us a call or stop by!
- Kathy, Kristen, Allisa, Sara Jo & Dani -