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insurance

Why Are My Insurance Premiums Going Up, I Did Not Have A Claim?

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It can be unpleasant to open your insurance bill to pay your premium, only to discover that your premium payments have increased upon renewal.  We know that most people who carry insurance policies on their homes, cars, and businesses may be unfamiliar with how insurance policies are developed and changed.  So, we thought we might help you understand the why.

Insurers base their policy prices on several variables.  These cost components fluctuate up and down.  Premiums are currently rising in many states.  Remember, insurance companies are competing for your business, so they try to keep their rates competitive.

To help us through the process, we wanted to break it down between home and auto insurance.

Home Insurance

  • The increased cost of construction materials and labor to repair or replace the damage to your home. Even though you did not have a claim, this impacts all insurance rates.
  • Storms and other natural disasters. Hurricanes, floods, droughts, wildfires, and other severe weather events have become more frequent, destructive, and costly. In 2021 alone, the United States sustained 20 weather events with losses exceeding $1 billion.
  • The older your home, the higher the insurance cost will be.
  • Lawsuit frequency has increased, and settlements are at an all-time high.
  • Supply chain in the production and delivery of appliances, materials, tools, and other key construction elements added to delays and cost hikes.

Auto Insurance 

  • Inflation hits the cost of buying and repairing vehicles.
  • Lawsuit frequency has increased, and settlements are at an all-time high.
  • After COVID, accident rates increased, causing insurers to pay more for claims.
  • Increased healthcare costs. Medical costs have increased for accident-related injuries.
  • Crime has caused more auto thefts and break-ins, affecting all drivers’ rates. There is a 20% increase nationally in stolen vehicles between 2020 and 2021.
  • Your driving record may be accident-free, but if you have tickets or other violations, these will impact your premiums.

Proven Ways To Help Keep Insurance Costs Down

  • Keep your home well maintained
  • Be a safe driver
  • Pay premiums annually
  • Ask about discounts offered by insurers
  • Bundle your home and auto together
  • Increase your deductibles
  • Have your agent review your insurance program and market your coverage the right insurer.

While the massive national agencies spend millions on television ads and offer barebones policies, they do not know you. When your needs change or your situation complicates, you don’t want an automated phone tree or cold cyber-agent. You want to talk to compassionate, honest insurance experts, close to home, right here in Beavercreek, OH – that’s our team. You shouldn’t have to spend hours researching and comparing policies. Let the specialists at Reichley guide you through the complex insurance industry.

Call today to alleviate the worry and get covered – (937) 429-0655.

 

 

 

Your Policy Is Only As Good As Your Agent

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agentTo say that your insurance policy is only as good as your agent is a bold statement. You have also heard me say, that not all policies are created equal. Just what do I mean by this? The idea is that your agent is the most important part of your insurance program. Here are three reasons why this is true:

  1. Insurance companies only offer a policy, they do not design coverage. On the other hand, independent agents can design coverage that is best for your specific needs.
  2. Independent agents work for the client, not the insurer.
  3. Experienced agents can help you identify and manage your risk, rather than sell you a policy.

The best way to ensure you are getting the best advice and value is to have a trusted relationship with an experienced agent. Like any relationship, communication is the key. A good agent will listen to the customer and offer risk and insurance solutions. There are times when insurance is not the best solution. Again, here are examples:

  1. Contractual Risk Transfer – There are many ways to transfer your risk through a contract or agreement. An example might be for products liability. If you are distributing a product manufactured by another party you can transfer the product liability to them, rather than take that risk on.
  2. Self-Insure – There are times when the risk may be such that you are better off self-insuring rather than spending a lot on an insurance policy with a super high deductible. Sometimes, you can mitigate risk by putting risk control techniques in place to reduce or eliminate the risk all together.

Only an agent who is interested in your best interests would offer you options that included no insurance. Rather than using any agent to get you an insurance quote, select a qualified independent agent who will collaborate with you and design a risk management program that meets your needs.

 

An Example of How Agents Are Different…the Rest of the Story

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My last article had a very good real life example of how agents can differentiate themselves from other agents, and how trusted relationships can add real value to the customer.  In the case mentioned in the previous article, the agent added $440,000 of value to the customer!

So where do we go from here?  Where we will go is right to the heart of our value proposition.  That is, insurance is about building trusted relationships, open communication, identifying value, assessing risk, and developing solutions.

How Do Agents Accomplish This?

Many of my recent articles describe how and why agents can change their own, and their client’s, paradigm from “insurance transactions” to “relationship management.”  Here are a few questions that will help get you started in the process of this great shift in thinking.  You might be surprised when you start asking your clients and potential clients these questions.  Most likely, they have never before been asked these questions by an insurance person.  Notice how many times the word insurance is used.

  1. Are there business issues that keep you up at night? What are they?
  2. What changes do you anticipate will be made in your business in the coming year?
  3. If you were in charge and had unlimited time and resources, what would you change in your organization? In your department?
  4. What changes could your service providers make to improve your working relationship with them and your entity?
  5. What areas do you think offer the greatest opportunities for your broker or any service provider to do an even better job of serving you?
  6. Who are your clients/customers?
  7. Do you rely heavily on one, or just a few, customers?
  8. To what extent do you rely on technology to run your business?
  9. In your industry, have there been any major changes to the way you do business today versus prior years, that could give rise to new risk exposures? If so, what are they?
  10. Where do you see the future of your company 12, 24, or 36 months from now?
  11. What kinds of service does your current agent provide?
  12. When your agent meets with you, what kinds of items are on the agenda?
  13. Describe how you evaluate your agent and risk management program?

Well you get the idea, these questions are designed to have the client do most of the talking and you do most of the listening.  You may even come up with better questions after you read this.  If so, please share them with all of us.  Remember, one of the goals is not to just recommend an insurance solution, but to understand the risk and needs first, then use collaboration to develop business solutions.

Reichley Insurance believes insurance is more than a transaction.  Insurance involves a trusted relationship built on a promise to put people before policies. Our promise is to listen to you, identify your risks, and provide solutions.  Every Reichley employee has the heart of a teacher.  Connect with us to experience The Reichley difference.

Spend a lot of time talking to customers face to face. You’d be amazed how many companies don’t listen to their customers. – Ross Perot