An Insurance Update
Personal insurance and Business Insurance will never go “on sale.” You will never see a 25% off or black Friday deal on homeowner’s insurance. Buy one get one free for auto insurance is not going to be part of the insurance buying process. There is a very good reason for this.
The insurance industry is highly regulated by Federal and state governments. It is designed to protect you from insurance companies going out of business. Insurance is designed to offer fair and consistent rates to all policy holders. The last thing anyone would want is to have an insurer hold a big sale, then not have enough money to pay claims. In other words, there is no special pricing gun or magic wand used by insurers to come up with your premiums.
Key Issues around regulations
- Brokers and agents are required to be licensed.
- Rates, or “premiums,” need to fair and equitable to all.
- Insurance companies need to be able to pay for claims well into the future.
- Rates are approved by State Government.
- Rates, or premiums, can vary based on the insurance companies’ ability to prove “actuarial sound” data to regulators.
What factors affect your premiums?
There are many different factors that insurance companies use to help them determine your final premium. These are important to understand, because you can use these to help you keep your premiums as low as possible. These are used in personal insurance, life insurance, and business insurance. This is not a complete list.
What you cannot control – Age, gender, and location.
What you can control – Driving record, value of your property, make and model of your auto, weight (life insurance) and claims history.
Alternatives Insurance® Agency was established in St Louis County in the fall of 1992 . Throughout the remainder of 1990's and through the millennium, additional locations were opened in order to service North and West St Louis, Saint Charles and Jefferson Counties. The demand for our products continued to increase motivating the partners of the organization to develop a business model in an effort to continue the growth and success without losing our superior customer service values.