Why do insurace rates move about up when you enjoy an misfortune when you money into insurance for that aim?
please tell me if i'm wrong but isn't insurance a collection of peoples money to pay for an catastrophe if there is one so there for your rates should never turn up i personally feel insurance is a rip sour and the govorment should make laws stating that an insurance company can individual make so muck profit because agent are getting rich from ripping people rotten when they have a wreck
Answers:
Insurance companies are in the same category as politicians and used motor salesmen, they rip you off all of the time. My insurer have a No Claim Discount guarantee but introduced a safe driver discount too, so they can put the rates up and say "Oh NO, we didn't bear your No Claim discount, this is different".
Also, when you try to make a home Ins claim they will tell you that anything you are claiming is not covered, in the hope you will go away, but if you insist on a claim form, immensely often it is and they pay you out!!
Insurance concept works based on pooled money collected from customers in establish to pay claims.
Insurance companies have their own ways contained by coming out with the premium charged on you.
Why they increase your renewal premium?
Reason 1: To discourage customer not to make small claims
Reason 2: Mitigate their risk profile & to gross them more profitable
Reason 3: So that you will be more careful and less disaster prone.
How to select an insurer?
Look at their overall risk profile in an insurance class. Some bigger insurer will have a bigger portfolio and the revised premium after claim can be second-rate than those who has a smaller portfolio
Thanks
loihl(a)einsuran.com
malaysia insurance portal
www.einsuran.com Source(s): www.einsuran.com
Your are right and you are wrong. I know it hurts to know that your wrong.
Look at it this way, yes your rates will go up if you hold an accident, unless they have first coincidence forgiveness. Then it won't.
Even if your rates go up. Think of it this way. If some point happens and you were to snuff out some one or put them into the hospital, wouldn't you rather have insurance than to not hold any? I'd rather have the insurance that will compensate for my mistake than to not have any at all. Plus a million dollar umbrella policy is a honourable idea if you own property, as the person you hit will get hold of a lawyer and if they see you have a house they will travel for the gusto and nail you big time. So then it's also apposite to have an umbrella policy on top of your other policy.
preach on brother! i have other thought that insurance companies take advantage of populace
Why is it when someone doesn't understand something, we are individual ripped off??
Yes and No...
The insurance company assesses risk and they hold found, through experience, that if you claim once you are more likely than the average person to claim again or end in a claim to be made against you. It makes sense then to consignment your premium to take this into account.
The converse is also true, if you do not claim after you are less likely to contained by the future, hence the "no claims" system of reducing you premium.
It may seem unwarranted when you claim because something is completely out of your control but the insurance companies are just running a simple statistical analysis. Also remember they have to brand a profit and cover their running costs so the overall premiums must outweigh the payouts.
It's not like a condition savings account, where on earth your own money goes to pay your own claims. It's nearly sharing the risk with groups of people next to similar credit, driving, and claim history.
When you have zero accident or tickets, well, you know one or two in a thousand are going to enjoy an accident, so you have low rates.
Statistics show that once you hold an accident or two, or have a ticket, you're MUCH more imagined to have a second accident than someone who's NEVER have one, so you move into a higher risk tier, where possibly 100 people in 1000 are going to own an accident - and the rates go up.
Then, if you enjoy a DUI, well, the odds are SUPER illustrious you're going to have an at fault fluke after that, like maybe 1 contained by 3, during the course of a year. So then you get moved to ANOTHER tier.
If you come up with auto insurance is a ripoff, pay cash for your vehicle, and buy state minimum liability. That way, if you have an coincidence, YOU pay for your car repairs, and if you do more spoil to someone else's car than you have insurance, YOU wages for that, too.
Insurance companies DON'T make profit on auto insurance, in broad. They usually pay out about $1.05 for every $1.00 they pinch in. Oil companies make difficult profits than that, and Coca-Cola makes even higher profit margins than grease AND insurance put together.
If you REALLY REALLY believe insurance companies are raking in tons of bread, buy their stock.
I don't, because the profit margins are too slim. Source(s): agent, 21+ years
Related Questions:
Answers:
Insurance companies are in the same category as politicians and used motor salesmen, they rip you off all of the time. My insurer have a No Claim Discount guarantee but introduced a safe driver discount too, so they can put the rates up and say "Oh NO, we didn't bear your No Claim discount, this is different".
Also, when you try to make a home Ins claim they will tell you that anything you are claiming is not covered, in the hope you will go away, but if you insist on a claim form, immensely often it is and they pay you out!!
Insurance concept works based on pooled money collected from customers in establish to pay claims.
Insurance companies have their own ways contained by coming out with the premium charged on you.
Why they increase your renewal premium?
Reason 1: To discourage customer not to make small claims
Reason 2: Mitigate their risk profile & to gross them more profitable
Reason 3: So that you will be more careful and less disaster prone.
How to select an insurer?
Look at their overall risk profile in an insurance class. Some bigger insurer will have a bigger portfolio and the revised premium after claim can be second-rate than those who has a smaller portfolio
Thanks
loihl(a)einsuran.com
malaysia insurance portal
www.einsuran.com Source(s): www.einsuran.com
Your are right and you are wrong. I know it hurts to know that your wrong.
Look at it this way, yes your rates will go up if you hold an accident, unless they have first coincidence forgiveness. Then it won't.
Even if your rates go up. Think of it this way. If some point happens and you were to snuff out some one or put them into the hospital, wouldn't you rather have insurance than to not hold any? I'd rather have the insurance that will compensate for my mistake than to not have any at all. Plus a million dollar umbrella policy is a honourable idea if you own property, as the person you hit will get hold of a lawyer and if they see you have a house they will travel for the gusto and nail you big time. So then it's also apposite to have an umbrella policy on top of your other policy.
preach on brother! i have other thought that insurance companies take advantage of populace
Why is it when someone doesn't understand something, we are individual ripped off??
Yes and No...
The insurance company assesses risk and they hold found, through experience, that if you claim once you are more likely than the average person to claim again or end in a claim to be made against you. It makes sense then to consignment your premium to take this into account.
The converse is also true, if you do not claim after you are less likely to contained by the future, hence the "no claims" system of reducing you premium.
It may seem unwarranted when you claim because something is completely out of your control but the insurance companies are just running a simple statistical analysis. Also remember they have to brand a profit and cover their running costs so the overall premiums must outweigh the payouts.
It's not like a condition savings account, where on earth your own money goes to pay your own claims. It's nearly sharing the risk with groups of people next to similar credit, driving, and claim history.
When you have zero accident or tickets, well, you know one or two in a thousand are going to enjoy an accident, so you have low rates.
Statistics show that once you hold an accident or two, or have a ticket, you're MUCH more imagined to have a second accident than someone who's NEVER have one, so you move into a higher risk tier, where possibly 100 people in 1000 are going to own an accident - and the rates go up.
Then, if you enjoy a DUI, well, the odds are SUPER illustrious you're going to have an at fault fluke after that, like maybe 1 contained by 3, during the course of a year. So then you get moved to ANOTHER tier.
If you come up with auto insurance is a ripoff, pay cash for your vehicle, and buy state minimum liability. That way, if you have an coincidence, YOU pay for your car repairs, and if you do more spoil to someone else's car than you have insurance, YOU wages for that, too.
Insurance companies DON'T make profit on auto insurance, in broad. They usually pay out about $1.05 for every $1.00 they pinch in. Oil companies make difficult profits than that, and Coca-Cola makes even higher profit margins than grease AND insurance put together.
If you REALLY REALLY believe insurance companies are raking in tons of bread, buy their stock.
I don't, because the profit margins are too slim. Source(s): agent, 21+ years
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