We are frequently asked, why rates increase on each renewal, whether it is auto insurance, classic and antique vehicle insurance, home insurance, renters insurance, commercial insurance, boat insurance, motorcycle insurance, ATV insurance and/or an SR22. First, it is important to understand how a rate increase impacts different policy holders. When an insurance company has an increase, the increase is distributed differently to different clients. If for example, the overall rate increase is 5%, that does not mean that all policyholders’ rates will go up by 5%. Some customers will experience a significantly higher increase, maybe two, three or four fold and some will experience less but overall, the entire increase, for the book of business, in a given state, will go up by 5%.

What can you do, as an existing customer, to minimize the increase? Consider what the insurance company is looking for in their ideal client. Do they want customers with tickets and accidents, or do they want customers without those issues? Do they want customers who pay late or let their policies expire or do they want customers who always pay on time or ahead of schedule? From time to time, insurance companies will rerun a person’s insurance loss history and driving record. They may also reorder a credit score to ensure that the risk has not changed significantly.

All of the things that have been mentioned, in prior blogs, regarding getting the best price on any insurance policy, are good rules of thumb when considering what you might do to minimize the inevitable impact of insurance rate increases.

Some things such as inflation, cost of materials, labor costs and business costs are out of your control but if you do the things that you know insurance companies consider important, they will attempt to price the insurance policy to keep your business.

Stellar Insurance has been helping people all over the Las Vegas Valley get the best coverage for years, including areas such as Henderson, North Las Vegas, Summerlin, and Boulder City. If you’re looking for the right insurance coverage in Las Vegas (including areas around the 89104, 89101, and 89107 zip codes), contact Stellar Insurance and see how we can save you a whole lot of money.