So why are Independent Insurance Agents the better option? Because, again, we can shop around coverage for you with a price you can afford.
- When applying for Property insurance/ Auto insurance. Companies look at few things to determine your rates: coverage, insurance score, location, claim history. Your insurance score is similar to a credit score, but there is no hard hit on your credit (no worries).
- Insurance is based on risk. So if you have filed a lot of claims within a certain number of years, this may make you more risky and therefore your insurance premium will reflect that. If you live in an area that is more prone to crime, i.e. theft, burglaries, break-ins. These crimes mostly happen to our auto or properties and the more this happens in the zip code you live the higher the insurance may be.
- Climate change! We are not justifying increased rates, but to rather give you an idea of how it works. So, climate change is something that has been happening for sometime now and insurance companies are taking a big hit. Some insurance companies have closed business because they did not have enough reserves to be solvent. Reserves allows an insurance company to stay in business and have the money to pay claims when needed. Also, keep in mind insurance is regulated by the state you are in. So sometimes you will see your insurance increase due to what we call Rate increases. This happens even if you don't file a claim. But it happens because insurance may be paying more money for claims in your zip code or could be a rate increase to make sure the company has enough money in reserves to pay claims when needed.
We hope this helps in your understanding of how insurance works. And it's never too let to shop around!