Much Goes Into Insurance Costs - Keating Agency Insurance
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insurance costsIt’s all about the numbers.  In determining your Auto Insurance costs, providers look at your driving history, credit score, and where you live.  They look at how far you drive and where you drive to, and what you drive.

But not all the factors that go into the cost of your policy are about you.

Insurance by nature is a group ventureEveryone who buys a policy from your provider is part of that group.

In this blog, the Keating Agency will explain another element that goes into pricing a policy.

Insurance Costs Impacted by Loss Ratio

Ryan Keating is a third-generation member of Keating Agency Insurance.  He recently wrote an article about the impact loss ratio can have on insurance costs.  This is the difference between the money your insurer collects in premiums and what it pays out in claims and dividends.

This table from our friends at the Insurance Information Institute breaks down the expense versus premium ratio for Homeowners and Renters Insurance for 2018.  Because the ratio is over 100, the insurance companies lost money.  The natural pattern following this would be to increase premiums the next year.

Additionally, insurance companies may adopt policies to tighten the purse strings on payouts.  High-cost claims may trigger more stringent audits.

insurance costsIf you are someone who never submitted a claim on any of your insurance policies, paying for others’ claims could seem unfair.  But, as we mentioned earlier, insurance by nature is a group venture.  Policies represent a shared risk.

They also represent a shared reward.  Our recent blog about Auto Insurance carriers reimbursing drivers is part of that shared reward.

If you feel the shared reward you receive is not worth the shared risk on any of your insurance policies, give us a call.  The Keating Agency has been your local, independent insurance agency for more than 50 years.  We attribute our longevity to our commitment to you, our policy holders.

The Keating Agency is your friend and neighbor.  We are here for you.

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