How might recent weather events like hurricanes Irma and Harvey impact your tow insurance rates?
Huh? What does a hurricanes that causes 100’s of billion dollars in damage in another state(s) have anything to do with my tow insurance rates? To answer that, let’s first look at how insurance rates at set:
- The biggest factor that impact your individual rates is your individual performance…. meaning claim activity and total amount of damage. Yet many insured’s are upset when there rates increase even when they didn’t report any claims that year, how is that possible?
- The second reason your insurance rates might go up is the overall performance of your Insurance carrier. Kind of like choosing a stock in the stock market, you are dependent on how well your insurance carrier runs it’s business. If your carrier is not an A rated or better carrier or they experience major losses during the year each policyholder will likely share in a percentage of that increase. Sometimes the Insurance carrier will just leave the tow market altogether, which has been happening all to often over the last several years.
- So now we can better address the original question of how catastrophic events outside the state impacting your tow insurance. All or almost all carriers purchase insurance themselves in their insurance market to diversify their risk. So when cost to purchase reinsurance takes a major increase it impacts everyone’s insurance rates.
In conclusion, there is no one way to prevent your rates from increasing, but the best way to get the best rates is by making sure you cover all eligible markets in your state. AutoRisk has more tow carriers to choose from in your state than all the other agencies. We may not have every carrier but if you want to make sure you cover your odds, one call to AutoRisk and we will help those chances go up dramatically.
