“But I didn’t have any accidents!” “But my car is another year older!”
These are common misconceptions why we, as consumers, expect to see decreases in our insurance rates every year.
Unfortunately…this is not always how insurance policies work.
Each insurance carrier has the ability to file their own rates. Insurance companies look at their claim payouts, their profitability, the risk in the states and towns they write, and they determine how they would like to structure their policies.
Some insurance companies take slight rate increases or decreases, while others can file for significant rate increases. This can also vary from town to town within the same state.
Factors that play into these company decisions is loss history, the amount paid for claims and keeping up with the rates filed by other carriers in the industry.
Distracted driving is a hot button that has caused us to see significant rate increase.
PS- Don’t read this while you’re driving!
Luckily, as an independent agent, we have our hands on the pulse of the industry. We know and compare what one company is doing from another and make the best choices for our clients.
Sometimes it makes the most sense to stay put with your current carrier, because you are getting the best rate and receiving loyalty benefits. Other times, depending on your carrier, it may make sense to have your agent look at other options.
That is why at Richardson Insurance our agency renewal process is so involved. Our job is to ensure we are protecting our clients in the best way possible. Our team is dedicated to reviewing our client’s policies and presenting them with all of their options.
While a decrease in your annual rate is exciting, consider it a bonus. Insurance is here to financially protect us at the time of a loss. We are all in this together. The more we do to prevent losses, the better our insurance rates can be.