Insurance Companies and how they price risk
Insurance companies are funny animals. They are statistical machines that analyze losses and try to predict future losses as best they can. There are a lot of things about your personal profile that contribute to an insurance companies estimate of risk and losses. This guesswork is the matrix.
Your insurance rate is made up of that guesswork. Things that effect it are:
– Your personal tickets and loss history within your policy
– Large losses the insurance company you are with has sustained, maybe in another part of the country having nothing to do with you
– Your individual profile, age of drivers, what kind of cars you drive, where your home is located, do you have a pool or a dog, how close is the nearest fire dept
– Your credit history
All of these factors and more go into your rate. Obviously there are way too many dynamics to try and figure out why one company would charge more or less for any of these factors, but they do. Every insurance company looks at all of these things differently.
What can you do
We can help you navigate the complexity. Please make sure to contact us for a rate check at least every 3 years. Things don’t usually change so quickly that you need to look more often than that, unless you have seen a large increase for no real reason.
If you want to help a friend or family member who is not insured with us, this is the one piece of information that might help them the most: If you currently have Farmers, American Family, or Allstate insurance, we typically save people between $600 and $1000 a year on a 2 car and a home package!
Please call us or tell your friends to call us so we can check their rate in the market place today.
