Elephant In The Room – Your Insurance Policy’s Rate Increase

July 6, 2017
alandaleadmin

elephant in the room - insurance policy rate increaseIt’s time to talk about the elephant in the room – your insurance policy rate increase. Too many agents are trying to shy away from telling their clients what is really going on, but we’re here to address the elephant (and hopefully get him back to the zoo, what’s he doing in here?!)

Why do insurance companies have rate increases?

Gas, groceries, property taxes… everything around us seems to keep riding an endless roller coaster of unexpected increase and decrease. Insurance is no different! Just like all other companies, insurance companies have to make money. With claim payouts at an all-time high in California, insurance companies have no choice but to increase rates or stop paying claims. I would much rather have a rate increase than a company who decides to stop paying claims, wouldn’t you?

People hate to hear it, but it’s reality… insurance companies are still companies, and they have to be profitable to stay in business.

Why wasn’t I told about my rate increase?

At Alandale, we do our best to take a proactive approach and contact clients before their renewal to discuss any options or changes that can be made. That being said, we want you to know that it’s hard to predict the changes. Most insurance companies don’t let their agents know about upcoming changes until 30 days before they actually happen. That’s right, you aren’t the only one being shocked by your new rate…. Often times, we find out when you do.

We’re doing everything we can to get ahead of the increases and get in touch with our clients as soon as possible.

I found a better rate somewhere else. Shouldn’t I just switch?

Switching policies to save money seems like the logical decision, but like all seemingly simple decisions, there are pros and cons. The amount of the savings has to be looked at against the cost of any early termination fees, possible uprates, and coverage comparisons. Many times, a client thinks that they are saving money and getting the same coverage, when that’s actually not the case.

If you’re considering a quote from a company that Alandale doesn’t work with (remember, we have access to over 20 A-rated carriers), it’s best to show it to your agent for an honest and unbiased comparison.

What can my agent do to help me?

There are almost always untapped discounts that your agent can find. Changing your coverage and maximizing discounts are the top two ways we can help clients lower their existing rate. However, if we can’t make any progress with your current policy, we do have access to the market. Your agent can shop your policies and let you know if there are any more competitive options.

The bottom line is that increases are inevitable for most of us. It’s important to keep in contact with your agent about your policy so that we can do what we do best! We want our clients to be comfortable in knowing that they have a team of licensed and knowledgeable agents at their fingertips.

For more information about your policy, contact your agent at (562) 493-3521! After all, that’s what we’re here for.

 

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