You’ve heard how inflation is affecting everything, including insurance premiums and claims. Learn more about how it affects your insurance.
Many factors, like higher interest rates, more lawsuits, severe weather events, increased frequency and severity of auto accidents, rising health insurance costs, and advancements in technology, are all resulting in substantial claim losses and settlements. This has been building consistently over a period of time. “Auto accidents are one example. When I first started here at the agency, we took a handful of auto accident claims per month. Currently, I can say that we’re taking a few auto accidents per day,” commented Pauline Handy, Marketing Director at V.F. McNeil Insurance.
These circumstances result in a ‘hard market’ which means that insurance companies are raising rates and restricting their capacity. Their willingness to accept new or increased risk and to insure families and businesses, is making it more expensive and difficult to get the coverage that residents and business owners need. Families and business owners aren’t the only ones receiving rate increases. Insurers also purchase insurance and their rates have risen too. This is called reinsurance and it transfers some risk for the insurer. Reinsurers have had to raise pricing as a result of these events.
Here are three things you should know.
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Hard markets are cyclical, but we don’t know how long they will last.
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During a hard market, there may be fewer insurers competing for your business.
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A hard market causes coverage to be more expensive. Insurers may also reduce the amount of your policy limits or modify your coverage terms. This can leave you more exposed to uninsured losses.
Consider taking steps to reduce your risk. As a result, you may qualify for potential policy discounts or better coverage options. These discounts can include smoke alarms, burglar alarms, fire suppression systems, vehicle telematics and water damage detection systems just to name a few.
As a Trusted Choice® insurance agency, we are working consistently to help our clients manage their insurance needs. In the event you should encounter the effects of this hard market, your not alone and you have help. V.F. McNeil Insurance wants to help you secure affordable, quality coverage. You don’t have to chance a “cheap” online quote, with little to no guidance. This could cost you more if a claim should occur. As an independent insurance agent, we have access to many options to provide solutions for your insurance needs. Your insurance agent can determine if any new options will fit your new needs.
You can expect our team to…
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Monitor market conditions and talk with insurance companies about upcoming changes to pricing or coverage terms and conditions.
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Evaluate risk management opportunities and resources to help you reduce your risk.
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Provide you with specialized support related to your specific coverage needs.
Our agency understands the difficulties that accompany premium increases and reduced coverage availability. We’re here to support you in navigating the current market conditions. Contact V.F. McNeil Insurance to learn what options we can provide for your insurance needs.
We are available to discuss your coverage needs and answer questions about any concerns you may have. Please don’t hesitate to reach out (203) 481-2684 | Schedule Appointment.
About V.F. McNeil Insurance
V.F. McNeil Insurance is a local, Trusted Choice® independent insurance agency located in Branford, Connecticut. As a full-service insurance agency, we can help with your business insurance, home insurance, and auto insurance needs and more. Contact us today for your insurance needs (203) 481-2684.
