Who causes “higher” insurance rates?

Most people will immediately think it is the company.  The company sets the rates and the underwriting standards that you accepted when you signed your contract with them.  The company determines which of your tickets, accidents and claims will have an impact on your rate and for how long. ** Despite what you may have heard corporations are not people and cannot get tickets or have accidents or claims**

The company determines which of your personal  characteristics influence the rate.  They also decide which factors of the house or  other property you chose to buy will determine the cost to insure.  Insurance companies decide what the rates are where you  chose to live.  The company set up any billing fees that exist as well as any discounts that exist for paying your premium in one or two payments.  Each year before your policy renews the company mails you new paperwork to review so you have a chance to ask questions and make adjustments.  You  also have a chance to review everything on your policy and if you felt so inclined could call around to other companies for a review. **Per a Google search, there are about 2648 insurance companies doing business in the U.S. that offer auto and home coverage***

So who makes insurance rates higher?

P.S. You  also may be with an agent or company that takes advantage of your loyalty and offers you some sort of silly ploy about accident free credits, etc.

P.S.2 Just like when looking for somebody to date, there  is somebody out there that likes you and your characteristics.  Maybe it is time to find that company….and be willing to find a new one next year.


Just some thoughts to consider.  You have more control than you think.


Get a free quote…

Seriously has anyone ever paid for an insurance quote?  I mean would you actually call a  1-800 number and pay for an auto insurance quote NO.  Why the heck would you, you are in control.  Without you these companies have no chance of survival so I cannot even imagine a day when you will have to pay for an auto insurance quote.

But despite this I would love to hear from anyone that can go a week without hearing an ad touting “get a free quote.”  Where might you see this offer;

  1. In a mailing, could be a postcard could be an awful generic letter.  Might even have a fake credit card.
  2. On the radio; satellite or terrestrial there is no escaping
  3. It has even gotten to my new friend Pandora
  4. Those awful newspaper inserts that show up over the weekend
  5. On a billboard
  6. On a t.v. commercial
  7. In a banner ad on any website

And the list can keep going.  The key here is that even though your quote is free it cost a chunk of money to get you call in for a quote.  So I think to myself what if they spent all that money to actually keep their rates consistent?  What if they gave back a dividend?  What if they actually spent some money educating the customer versus just trying to get them to call for a quote?

Don’t hold your breath none of these suggestions are likely to occur.  Either way, enjoy your “free” quote with some caution.

Just some ideas, thanks for reading.