Here in Colorado we have seen the perfect storm over the last couple of years. Tremendously high hail counts, a poor financial market, increased policy coverages and a long run on insurance companies lowering premiums to gain market share.

Lets break these down further.

1. Hail losses: 2009 and 2010 were severe loss years for Hail and Wind in Colorado. If it wasn’t hailing in your neighborhood, rest assured it has been hailing in others. Millions of dollars have been paid out on catastrophic losses as the direct result from covered perils Wind and Hail. Despite deductibles at 1k or higher, insurance carriers have had to replace most roofs in the Denver Metro Area.
2. Poor Financial Market.  Typically insurance companies can run loss ratios a bit higher then they would like if they are able to offset their loss with revenues generated from their investments.  When they are not getting the returns they would want for this offset, it results in a negative impact to shareholders or investors
3. Policy Coverages.  Over the years that I have been an agent, I have seen companies offer more and more coverages on a home policy.  Fire and Wind/Hail would be a given here in Colorado but now carriers offer identity theft, sewer backup, frozen plumbing, Increased coverages on Jewelry etc.  These additional coverages are enticing to clients that would rather file a claim then to eat their loss.  More coverages equals more claims and if the premium is too low for the amount of coverages, then we have yet another negative impact on loss ratios.
4. Lower premiums.  Many insurance companies both existing and new to Colorado have been competing for your business.  Not just on auto but on home.  There is a standard market premium that in theory would be what an insurance company should charge based on their overall risk.  This “mendoza” line that the industry sets has been somewhat ignored and premiums have been lowered to gain market share.  This is risky business when we have hail losses in Colorado.  Not enough premium for the risk!  Sounds like yet another negative.

So what can you expect and what can you do about it? 

First things first, home premiums are going up!  Yep.  No question.  Around 20 to 40% for some carriers.  So if you were paying $1,000 for home insurance, expect a $200 to $400 increase within 12 to 24 months.  So, with this in mind, my suggestion would be to discuss higher deductibles for sure and look to consolidate your auto or rental properties with the same carrier.  The more you bundle, the better.

One idea that not many people know about is you can re-rate your home insurance with the same carrier.  Why?  If your credit has improved (or gotten worse), your rate can be adjusted.  Talk with your agent about re quoting with the same home carrier if you feel confident your credit score has improved.

Dont put your auto with one carrier and your home with another.  At any chance consolidate.  I cannot express this enough as insurance companies can get premium from your auto to offset their risk on the home.

Will this end soon?  The answer is no.  Insurance companies are only allowed to increase premiums with the insurance commissioner at set times and at set amounts ( I am not a specialist on this).  I do know that if they could, many would take a 100% or 200% increase on home premiums to get them profitable.  Of course, they would lose all their business so they have to take increases slowly over an extended period of time.  Also, can we expect more hail to hit Colorado?  If you have lived here longer then 12 months, you know the answer is yes.  And with the above negative impacts, will the home insurance carrier be able to get the premium profitable soon?  I doubt it.

Did I mention Credit?  I mentioned how you can re quote if your credit improves but what if you have poor credit and trying to purchase new home insurance?  Your rate will be higher with 90% of carriers.  Here at my agency we have one company that will place competetive home insurance on credit that is sub par. 

Use an indpenendent insurance agent that can go through several markets.  Why anyone would use one agent with one product is amazing.  Relationships and company branding are my guess.  They like their agent and carrier even though they are paying too much premium with potentially lower coverage.  I know my clients value me (at least most of them!) but I am not worth 30% higher rates for anyone!

Take your time to understand what your policy covers and if you have questions, give me a call.

Rick Cline: All Access Insurance

www.rickclineagency.com

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Call Today for a no obligation Quote.  New to AARP?  No problem.  We can set your account up. www.rickclineagency.com

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I am looking for your help. This Holiday Season All Access Insurance and Rick Cline would like to donate $3 towards Care 4 Colorado Toy Drive for each review that is placed for my Insurance Agency on the following sites.

1. Yelp
2. Yahoo Local
3. Google Places

It is very easy to leave a review on these sites and the donation will be used to purchase toys for kids this Holiday Season http://denver.cbslocal.com/care-4-colorado-toy-drive/ for more information.

To participate, simply leave a review on the below sites by clicking this Blue “Click Here” below. You will be routed directly to the site.

· Please Click Here to leave a review on Yelp (no sign on needed)
· Please Click Here to leave a review on Yahoo (Yahoo sign on needed)
· Please Click Here to leave a review on Google (Google sign on needed)

That is right, you can donate up to $9 to Toys for Tots by leaving a review at each site!!!

We will close it out on 12/21 so please act fast!

Thank you kindly for participating in this donation. I am very excited to see how many toys we can purchase!

Rick Cline

• Instead of putting your personal information online, contact a local independent insurance agent
• Why a local independent insurance agent?  Easy.  Indpendent Insurance agents are not tied to one company.
• Technology allows an agent with multiple companies to take your information securly over the phone and get quotes fast.
• How?  Comparitive raters take your information and get accurate car insurance quotes with over 12 leading insurance companies in Colorado

• Advantages.  You dont have to establish new relationships with your insurance agent if you are not happy with your car insurance premium or the insurance company in general.
• Disadvantages.  Independent insurance agents dont have the branding that captive agencies have because they spend their marketing dollars back into competetive rates.
• Visit www.rickclineagency.com to get a quick car insurance quote in Colorado Arizona or Nevada

Rick Cline

Agency Owner

1. Ask your mortgage broker if they have any referrals of agents whom they have used in the past.  Often times they may have a great referral source but make sure you ask for 3 names.  That way you can compare
2.  Be prepared to give the agent the following information. Full names, Date of Births, Social Security number, Property address, Square footage, # of bedrooms, # of bathrooms, Any detached buildings?  Age of the roof.
3. In nearly all cases, it saves you money to consolidate the auto and home insurance so be prepared to give auto information to the agent
4. Closing date.  Before you close, the agent will need to send an evidence of property insurance to your lender so that the mortgage company knows the home is insured and at what level.  They want to make sure the loan amount is covered
5. Notify your loan officer and real estate agent that you have selected an insurance agent and an insurance company you are going to do business with.  From there, the insurance agent and the lender can begin drafting the necessary paperwork before closing.

Buying a home can be a great experience and having an insurance agent that is knowledgable and has multiple companies to choose from will make the process much easier. 

Here at All Access Insurance www.rickclineagency.com we have access to multiple carriers and can give you price comparisons from over 8 leading home insurance carriers.

Find the best quote with us!

Rick Cline: Agency Owner All Access Insurance 303-932-1700

Does your agent shop your rates for you?  Come to think of it, can he?  If your agent is captured with one company, they cannot look for other carriers rates and offer you a better solution.

Auto insurance is affordable when you review your coverages and carriers with an indepednetn insurance agent.  Call us at 303-932-1700 or visit www.rickclineagency.com

1. Are all auto insurance carriers offering the same coverage?  State law requires that insured carry Liability coverage for Bodily Injury and Property Damage.  They also require $5k in Medical coverage (can be waived with a signiture).  Outside of this coverage, all the other coverages are elective.  Comprehensive, Collission, Uninsured Motorist for example
2. When I am offered 20% off for discounts, what does that mean?  I love it when insurance companies offer discounts for things like Accident Free, Ticket Free, Good Student, Low mileage, Gated community, Credit, etc.  The list goes on and on.  Keep in mind that the insurance company must file its rates with the insurance commissioner.  All of them do.  So if they are offering discounts, they may be discounting already un competetive premiums in the hope that you will come on board.  There are two things to really watch when you are offered discounts from a carrier.  1.  Is the discount good at renewal?  2.  If I have a claim or a ticket, do I lose the discount?  In many cases, you lose discounts as fast as they are willing to put them on.  So, dont be fooled by insurance companies offering discounts on auto insurance over, and over, and over….
3. Are renewal rates different then new business rates for auto insurance with the insurance commissioner?  The answer is yes.  You can have a rate of $600.00 every 6 mths on your car and then at renewal, for no reason, your auto rate could go up.  That is because renewal rates can vary as they are reported differently with the insurance commissioner.  This is really apparant if you have a ticket or accident in the first term of a policy.  Watch your rate sky rocket! In many cases
4. Is buying auto insurance online ok?  Or, should I call an agent?  This is a great question and one that is changin daily in the auto insurance industry.  Most clients, about 80%, will go online to begin their auto insurance shopping, however, more then 70% will call an agent or a carrier directly to speak with someone.  The problem with buying insurance directly and not through an agent is that often times the coverages are not what you need!  Saving money is not always the best option!
5. How can an advertisement for auto insurance tell you they can save you money, as much as 20%, when they dont even know what you need?  If you have a home and assets to protect, why would you want low liabiltiy limits?  Just to save money?  If you are in an accident, you run the risk of losing all your assets…
6. Do I go with Liability only or full coverage on my auto?  My rule is that if your car is not financed and has more then 125k miles on it or is older then 12 years, go with Liability only.  The amount of coverage in the event of an accident will be lower the older the car gets because the policy is based on Actual Cash Value, not replacement value.
7. Who has the best auto insurance in Colorado?  Yes we are independent local agents and yes we quote policies on a daily basis.  I get this question asked a lot because clients want to know what I recommend.  The answer is, it depends on your variables, not what we guess.  With over 100 variables going into one auto rate, it is tough to predict.  Travelers Insurance, Safeco Insurance, Progressive Insurance, Allied Insurance and Kemper Insurance all do very well in Colorado.  If you are an AARP member, look at The Hartford.
8. Does credit play a role in my auto insurance?  Why?  Yes, Yes, Yes.  Credit is becoming the #1 driving factor for auto insurance premiums.  The reason is that insurance companies can prove statistically that if you have poor credity, your more likely to get into an auto accident.  If they can prove it,  you will pay for it!  Most carriers do offer reductions at renewal but they do not run your credit at each renewal term.  Ask your agent for some additional options if your credit has improved.  Can make a huge difference in saving money on your auto insurance. 
9. Why an independent insurance agent vs a captive agent?  What is the difference.  A captive agent sells one product with one company.  They sell on value!!!  But what if the product is not competetive?  Does it get more valuable the more expensive it is?  The answer typically is no.  Of course if you add coverage, you add value and the premium goes up.  However, if you dont had coverage and the premium goes up, did you gain value?  No.  An indpendent agent represents multiple companies that also have value.  You can keep value and coverage and save on premium with a good independent agent.  They work for you, not the insurance company.
10. Where do I get started on looking for rates and where do I go to buy auto insurance?  I would recommend that you start with a rating engine online that allows you to quote multiple companies.  Be prepared though, because when you hit submit, several agents are getting emails to call you to look at your policy.  This can get quite annoying.  Another option is to individually call 5 leading auto insurance companies and ask them for a fax or email address.  Send them the information and have them get back to you with a quote.  This seems to be more personal because you are choosing the agent.  Lastly, I would recommend calling an ageny like www.rickclineagency.com.  We have access to a comparative rater and get rates wtih leading companies fast.  Same day binding authority and great service. 

Here are some comments from actual customers with Travelers Auto and Home Insurance Denver and Littleton Colorado.  As you will see, there is a great deal of respect for the adjusters and the company backing the individuals auto and home insurance claims.

1. “I have never seen a claim handled better or more professionally,” writes a customer from Denver Colorado. “I was totally shocked by the way Travelers handled my claim. [The Travelers auto Claim professional] was attentive, quick and responsive, and most important of all, he understands customer satisfaction. I could not be happier that your company is my insurance company. You now have a customer for life.”

2.“[The Travelers auto Claim professional] provided exceptionally excellent service,” says a claimant from Littleton Colorado. “Her communication was always prompt, clear and friendly. She handled my claim with speed and compassion. She followed up with me to see how I was doing and to keep me informed of the process. … For my part, I am moving forward to switch my own car insurance to Travelers. I want to be associated with this kind of company and the excellent service you provide.”

3.“In all my life, I don’t think I have ever experienced such amazing service as that provided by [the Travelers auto Claim professional],” states a Washington claimant. “She was immediately responsive, often writing to me even before I wrote to her on things that needed to be taken care of. … She was phenomenal.” 

If you think you might want to go with Travelers Auto and Home Insurance, click on www.rickclineagency.com to begin!

Rick Cline 303-932-1700