Woke up early and was immediately thinking about one of my last conversations yesterday. Let’s start with some math;
If you spend $1000 and in return I lower the cost of something by about $3000 what could you consider your return on investment(roi)? $2000 not bad. Not bad at all.
So in the first year of this new product you saved $2000 by spending $1000. Now in the second year(assuming current numbers stay the same) you actually save $3000 since you do not spend the $1000 again. So you have now made $5000 by investing $1000. 500% return.
A rate $600 higher than the market will bear. Such a shame. I have been told that if an insurance company has a customer with no claims they become profitable within about three years. Based on this it is safe to say a customer of 62 years has earned your company some money, yet you let them go. Kind of like the goofy T.V. or movie scenario where the employee of 30 years gets a cheap watch and a certificate of appreciation.
In your own world be sure that loyalty goes both ways. Loyalty is earned and should not be given. If you vote with your dollars you will likely not have this happen to you.
Step 1.Remember why you have insurance, it is not for the little annoying thing that you can comfortably afford to fix. It is for the event that you need help paying to fix. Filing a claim because “I pay for insurance why shouldn’t I use it…” can get you in to trouble. **What is trouble? Trouble is having rates on the higher side of the market for at least three years**