Ok, I get it. Your car insurance rates just increased, and you haven’t had a wreck, a ticket, or a claim in forever. It’s just not fair! Why do these rates keep going up? After all I can save 25% in 15 minutes or less if I contact a lizard, or maybe 30% if I call that crazy woman. Surprising how some companies have lowered their rates so maybe I should call them. As an agent starting out, I initially had to build my business on people who were shopping for better insurance rates. But if there is one thing I have learned, it’s that the satisfaction of a cheap price disappears quickly after the experience of poor service, or worse, inferior coverage when you need it.
Medical Costs are a Big Reason for Hikes in Car Insurance Prices
Before addressing the issue of coverages and service, I would like to make a few comments concerning insurance rates based on actual statistics. Almost all insurance companies are losing money on automobile insurance when considering actual incurred losses, administrative costs, versus premiums received. Some of the larger companies are able to withstand the losses based on their shear size; writing other lines of more profitable products such as life insurance to offset the losses. However, the actual cause of rate increases goes deeper than the desire for profits from the big bad insurance companies.
Medical costs related to car accidents makes up over 70% of the monies paid out by insurance companies. As medical costs continue to soar this directly affects the cost of your car insurance. Have you seen a billboard lawyer lately? You probably can’t drive more than a few miles without see a billboard promising you a big fat check if you just got “hurt” in an auto accident. Not to mention that the technology in vehicles today, where sensors and computer chips are in every feature, a “minor” car accident can still cost thousands. Where before, cars could handle a lot more impact with a lot less expense.
What do I NEED in Car Insurance?
There is a certain company that advertises that they will just sell you what you need. Are the minimum limits required by the state you live in just what you “NEED”? Does the person who answers the 1-800 number tell you what you need? Maybe they took the speed course on insurance to get the job and started yesterday? Or worse, they aren’t qualified to give you the answer you need, but what you want to hear. It is all about the lowest rate until you look down at your spilled coffee and run into the back of a 2021 BMW. With $25,000 property damage coverage won’t even cover the bumper much less the other damages. Especially if the ambulance has to take the victim to the ER, and you have to pay for their medical bills. Not to mention the pain and suffering, loss wages, and who knows what else as they jot down the phone number of that Bill Board Lawyer.
Remember One call, that’s all…
If insurance agents could control the rates, I promise you they would be the lowest in town! After all, we get paid for bringing in new clients, not chasing them away. The right insurance agent is going to determine the proper amount of protection you really need. Perhaps by combining other lines of coverage to maximize your discounts and show how you can take small risks by changing your deductibles to cover the big risks.
No Accidents, Claim Free For 3+ Years?
And finally, how about actually rewarding you for not having accidents by refunding 25% of your premiums if you are claim free for at least three years? At Samaha Insurance it is never about us, it always about you! We will always give you a free no pressure proposal, we give information and advice, but you make all the decisions. Come by and give us a chance to earn your trust!