Why are my insurance rates skyrocketing?!?!?

Whitefish Bay WI

20 July, 2021

3:54 PM

Description

Brew City Insurance it is our mission to offer customers a truly exceptional insurance buying experience. We provide our customers with the knowledge to choose the best possible insurance products that fulfill their wants and needs. Our friendly, knowledgeable and professional staff will help inspire, problem-solve, and best of all EDUCATE our customers so they can choose the coverage that best fits at a reasonable price. I get it. Any increase to your premium is disappointing, frustrating, and seems COMPLETELY unfair. Sadly - even if you haven't had an accident or filed a home claim, your insurance premiums probably will go up. Nobody likes paying more, so I'll share some reasons why your rate may have increased. Reason #1 Insurance is a huge "pool" of people paying money into a common fund that will pay when claims occur. Since you only pay in a small portion each year of what it actually would cost to replace your entire house or car, other people's money from that fund is used to replace your house should something happen. Imagine now if a hurricane, large hail storm or wild fire damages MILLIONS of dollars worth of homes and cars in your state – the insurance company will have to pay to replace those items. In some cases the insurance company actually loses more money than what was in that pool of money.In the chart below you can see that in 2019 only Geico, Travelers, and Progressive actually retained some of the premium money. The rest all lost money that year. Numbers over 100% means they lost more than they took in for premiums. Example: State Farm lost 12% more than they earned. If these companies didn't raise their rates they would very quickly be out of business. Even the very small 6% Progressive retained is a razor thin margin for staying in business. After all, they have costs to run the company as well. Reason #2 The price of everything goes up each and every year. Higher cost of cars and housing means higher payouts when things go sideways. So - Insurance companies must calculate insurance premiums based on what they expect claims will cost that next year. Obviously if they lost money the year before the rates are going up!! Bottom Line Rates for everyone, even good drivers, will continue to move upward. That is why it is more important than ever to have an independent insurance agent that can find the companies that have the lowest rates with the best coverage. When shopping around for any insurance, Brew City Insurance is a great place to start Brew City Insurance has access to several major companies. We are able to run your information through a rating service and find which company offers the best coverage at an affordable premium to best meet your needs. There are several Wisconsin based insurance companies who do not advertise on TV, radio and therefore have lower premiums. And you will still have the convenience of the high quality personal service we offer instead of a 1-800 number and a call center somewhere overseas. Brew City Insurance Agency Inc. is located at 2937 S Chicago Ave. in South Milwaukee between Pick N Save and Walgreens. Stop in today and see what we can do for you! Or call 414-762-6600 and we can quote you right over the phone. Visit our web page to find out more! http://www.brewcityinsurance.com