Oct 272010

It is amazing at how many people that I talk to that tell me they don’t trust their insurance company.  They continue to pay the premiums hoping that they never have to file a claim.  I had one gentleman tell that reason he felt this way is that he knew that his insurance company would not pay him what he felt he would rightfully deserve.  It shouldn’t be that way, but that is how the insurance business model is built.

The typical insurance company wants to maintain a loss ratio as low as possible, this makes them more profitable.  What do I mean by loss ratio? Here’s a simple example, say that an insurance company has 100 clients that each pay $1000 per year for their homeowners policy.  This would equal $100,000 in premiums for that year.  Then one of the policy holders files a claim for $100,000.  This leaves zero profits and a 100% loss ratio.  Therefore insurance company’s take the steps needed to maintain at least a low loss ratio in order to keep profits up and who do you think suffers when these practices are put in place, you do, whether it’s through higher premiums or claims that have been reduced by the insurance companies.  Click here to see Homeowners Insurance Loss Data for Texas.

So based on everything shared here, doesn’t it make sense to hire someone who is going to work on your behalf?  Someone who has experience in dealing with insurance companies?  That’s what a public adjuster can do for you.  The staff here at InsuranceBusters.net works hard on your behalf, we represent you and only you against your insurance company and we don’t get paid unless we’re successful in our efforts to secure a claim for you.  So if you have filed a claim with your insurance company and you feel that you’re claim was not what it should have been, then click here and complete the form to allow InsuranceBusters.net go to work for you.  We’re licensed Public Adjusters for the states of Texas and Oklahoma and are ready to put your best interest at work.


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  One Response to “It’s A Bad Business Model For The Consumer…”

  1. Did you just stick with your current insraunce carrier, or did you shop around? We have two cars, one is a 2008 Fit, the other a 1998 Forester. We have a loan on the Fit, so we have always had full coverage insraunce on it. When our insraunce came up last month, I shopped around and found every other insurer I called was lower than who we had, and the one I settled on gave me full coverage and higher liability on BOTH vehicles for $ 200 less (over 6 months) than what we were previously paying.I’m not here to advertise for my insurer, so I’ll put it this way: I spent a couple hours on the internet and on the phone and called several national insurers directly. I don’t trust generic comparison boards on the internet, because that is where I got our last insraunce. You don’t even have to leave your current insurer, you can call them and tell them the quotes you got from the competition.Make sure you maximize your discounts. Paying all up front netted me a $ 50 discount. Letting them put a big brother device in our cars is netting us about $ 100 discount. No wrecks since 1988 (although I think they only consider the last 3 or 5 years) was another discount (not sure how much). Seems like there were a couple others, but I can’t remember them. Was this answer helpful?

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