Why did my rates go up?

We are probably asked more than any other question here in the office, one question… “Why did my rates go up?” The most honest answer, because Insurance, like everything else, must keep up with the demands of the economy. When you see prices go up in the grocery store, you know that this is because companies must raise their prices in accordance with what is going on in the world to make a profit. The same goes for our clothes, cars, or any other consumer or capital good. Insurance is a service industry that provides a good – although intangible, and the multiple Companies/Carries we represent-AUTO OWNERS, CELINA, INDIANA FARMERS, PEKIN, PROGRESSIVE, SAFECO, and so on- must do the same in order to keep their doors open. There are other secondary issues that also come into play, but the most common misconceptions are:

1- I have had no claims so my rates should not have gone up

2- My car is getting older so it should get cheaper.

Going back to the economy, we can see that rates are going to rise without consideration. The other two thoughts are not key pieces to the insurance puzzle because rates are not just based upon YOU! Insurance Companies have people called Actuarialists who look at a range of data from all across the Country and all ages groups and all types of vehicles and all genders, and so on and so forth, who come up with values of how insurance companies should place premiums on people’s policies. This includes how far people live from fire stations (how much damage is likely in a house fire), how expensive or hard to find are a vehicle’s parts (how expensive to replace), how does a car do in an accident (likelihood that it will be a total loss or loss of life) . . . So we then have to not focus on “Why did my rates go up” because as with life, we know the price of 99% of all products sold will go up, we now have to look at are my coverages correct, are my rates appropriate, and what should or could I be looking at to be sure I am where I need to be. Let us help you by making sure we have all your information updated: roof, furnace, cars, kids off your policy, cars, off your policy…Also, another great thing to look into a few of our carriers offer are programs that look at how safe of a driver you are. Everyone likes to say, “I have no claims”, this is just another way to show that you are that good of a driver. It is a way that you can save up to 30% on your premium! This is an easy way to save some more money by doing nothing!!! Call us and we can discuss with you if your insurance carrier offers this plan.