I was watching Fox 6 news last night while getting ready for bed and they had their Business Journal Minute that gave some details on a rumor I have been hearing for the last few weeks. American Family Insurance is increasing their Home rates by about 10% this year. This comes after an increase of about 11% last year. The Business Journal has the short article here.
While almost every insurance companies makes adjustments on an annual basis, these increases are quite high. Most of the companies we represent are still only adjusting their rates by 1 or 2 percentage points and many of them are midwest based companies too.
Oddly enough the midwest has always been a better place for insurance companies to operate simply because we don't have the hurricanes, mud slides, wild fires, etc that the coasts get hit with on a regular basis. However, the last few years the midwest has gotten hammered with hail storms, heavy rains and bad snow storms.
These types of increases by insurance companies are one of the main reasons we are an independent agency. If one of our companies increases rates by too much we have many other companies that are willing to accept the business at better rates. At least then you as the client just have to get used to a new company, not a new agent and a new company at the same time.
As always, quotes are free and we love referrals give us a call or tell your friends. Every referral earns you a $10 gas card just for sending your friends and family to YOUR FRIEND IN INSURANCE!
Showing posts with label increased premiums. Show all posts
Showing posts with label increased premiums. Show all posts
Friday, June 19, 2009
Friday, June 5, 2009
Don't raise my insurance premiums!
Recently the Joint Finance Committee approved a final version of Governor Doyle's budget which contains a number of mandates that are going to have a major affect on everyone's insurance premiums. Did I mention they did this in the middle of the night? That doesn't seem sneaky at all!
Here is a summary of the issues:
1. A return to joint and several liability, in which you can be forced to pay any millions of dollars even if you were only minimally at fault. Currently, state law mandates that a defendant must be found at least 51% at fault to be found liable. Doyle wanted to reduce that to 1%. The committee will tell you that they listened to the people and compromised by changing Doyle's proposal to 20%. So now, an individual who is 80% innocent can still be held liable for 100% of all damages.
2. Requiring the highest auto limits in the nation. As a compromise, the Democrats agreed to phase in the increases. However, to make matters worse, they added an annual inflationary index that would eventually require the minimums to be raised to odd numbers like $103,624.
3. Allowing stacking of limits for Uninsured and Underinsured Motorist. This is a particular concern for commercial auto. For example, under current law if a customer purchases a limit of $1 million, then that customer is protected up to that limit for any one loss. Under the new proposal, the limit would be determined based upon the number of vehicles that are insured. So, the person who owns a fleet of 100 vehicles, would be able to "stack" all of the limits together and would be covered for, not the $1 million he paid for, but $100 million.
4. Allowing judges and attorneys to give a jury instructions which will unduly influence them and introduce a sympathy factor. A jury is supposed to decide cases on fact, not sympathy.
5. The budget also calls for numerous tax increases as well as fee increases on such everyday items as your cell phone.
I know people don't like thinking about insurance but we all have to pay for it and our Governor is trying to make you pay more by adding in these changes to the budget. If you have a second click on the link, http://www.votervoice.net/link/target/wiia33772441.aspx and fill out the form to let them know you do not want to pay more for your insurance premiums.
Tom
Here is a summary of the issues:
1. A return to joint and several liability, in which you can be forced to pay any millions of dollars even if you were only minimally at fault. Currently, state law mandates that a defendant must be found at least 51% at fault to be found liable. Doyle wanted to reduce that to 1%. The committee will tell you that they listened to the people and compromised by changing Doyle's proposal to 20%. So now, an individual who is 80% innocent can still be held liable for 100% of all damages.
2. Requiring the highest auto limits in the nation. As a compromise, the Democrats agreed to phase in the increases. However, to make matters worse, they added an annual inflationary index that would eventually require the minimums to be raised to odd numbers like $103,624.
3. Allowing stacking of limits for Uninsured and Underinsured Motorist. This is a particular concern for commercial auto. For example, under current law if a customer purchases a limit of $1 million, then that customer is protected up to that limit for any one loss. Under the new proposal, the limit would be determined based upon the number of vehicles that are insured. So, the person who owns a fleet of 100 vehicles, would be able to "stack" all of the limits together and would be covered for, not the $1 million he paid for, but $100 million.
4. Allowing judges and attorneys to give a jury instructions which will unduly influence them and introduce a sympathy factor. A jury is supposed to decide cases on fact, not sympathy.
5. The budget also calls for numerous tax increases as well as fee increases on such everyday items as your cell phone.
I know people don't like thinking about insurance but we all have to pay for it and our Governor is trying to make you pay more by adding in these changes to the budget. If you have a second click on the link, http://www.votervoice.net/link/target/wiia33772441.aspx and fill out the form to let them know you do not want to pay more for your insurance premiums.
Tom
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