Why did my insurance go up?
A question for the ages
From the Desk of Tyler Doherty, CEO of Doherty Insurance Group
When it comes to renewal time, the number one question we get is “why did my rate go up?”. In today’s blog post, we hope to pull the curtain back and give some explanations to this common question.
The first thing to understand, is that insurance pools risks together to help create predictable loss scenarios. Unfortunately, sometimes those math equations don’t predict a huge wildfire in California. That means that rates may be increased come renewal time for those in other parts of the country in order to recoup some losses.
This is the main issue with renewals for Captive Agents, which we learned in a previous post, only represent one company. So when they have an exceptional amount of losses, everyone else pays up.
Fortunately, independent brokers are able to hold companies accountable when this happens, and switch their clients around and maintain the same coverages and rates.
Another reason rates may go up is if you have made a significantly higher number of glass claims than others. Don’t be lured in by signs that say “$100 gift card for windshield fix with insurance”. These places simply charge the insurance companies more than usual and give you a kickback. This behavior is obvious to the insurance company and they will raise the rate to compensate come renewal time.
The last thing to note is that sometimes there is no reason. A few dollars here and there is normal, just like with gas and groceries. If you are concerned, always call your agent and discuss.
If you’re ready to take the plunge and hold your agent or 1-800 number accountable, click below to get started.