Believe it or not, insurance rates had been decreasing for the last 8 years.Unfortunately, in 2012 they will start going up again- 5% to 30% per year until we reach 2003 rates. The favorable conditions that in the past allowed insurance companies to lower their rates and attract more customers have vanished. Insurance will be harder to get and more expensive for the next few years.
2011 was a tough year for everyone and the insurance industry was no exception. 2011 third quarter insurance industry profit declined 92%. The biggest hits came from record catastrophe claims and the crash in the real estate market. Because insurers invest heavily in real estate, the value of their investments plummeted and their need for additional capital to meet the insurance risk reserves required by law increased.
The California Insurance Department has approved rate increases for insurers. Financially strapped insurance companies have few options and none of them benefit the consumer. Insurers can go out of business, stop writing new policies, stiffen eligibility qualifications or raise the rates of current customers.
If your insurance provider raises your rates, call us at Allied Brokers immediately. As a broker, our agents can shop numerous providers to find you a lower rate. Since not all companies will raise their rates immediately, we can save you money and buy you time by switching you to a different provider.
Visit our website at http://www.alliedbrokers.com/ for information about all the types of insurance we offer. Or call 1-888-505-7988 for a free rate quote.