Every insurance company determines rates differently
Insurance companies have a tremendous amount of data and predictive modeling to help determine the correct premium for the right risk. Some may not rate for not at fault, where others may not accept any new business with a client who has a not-at-fault accident in the last 12/24/60 months. It is tough to use a single color to paint an entire picture!
For example- While Travelers may not rate against a not at fault claim, when shopping for a new policy, Allstate or State Farm might.
Predictive modeling suggests if an individual has a not-at-fault accident, that they are more likely to have an at-fault loss in the next five years.
In fact, many insurance companies may offer the best price to clients with several, not at fault losses, but declined to bring them as a new business client. This is because they may not penalize for not at fault, but their data suggest they are not profitable due to the statistical likelihood of another at-fault loss in a 5 year period. When insurance companies promise coverage, it isn’t in the hundreds of dollars, it is in the hundreds of thousands of dollars.
Think about it. If someone called you up and said hey, I need you to co-sign on my new car, but you know your friend has had 3 not-at-fault accidents in the last few years, how eager are you to sign for that car? While there is bad luck, the question is, what is your friend doing to have such bad luck?
Distracted driving is almost as dangerous as drunk driving. It limits the field of view, and reaction time in adverse conditions. These two behaviors not only cause accidents but fail to mitigate the damages caused before the accident occurs.
Whoever one thing is for certain, not at fault accidents do not affect the rates as strongly as violations or at-fault losses.
There is nothing personal about insurance rates. They are the summation of the data collected by the insurance company to help better understand the risk. Many insurance policies insure hundreds of thousands of dollars of liability on the behalf of their clients, and the premium is merely a fraction of that cost each month.
Another reason why TWG partners with more than one insurance carrier!
At the end of the day, each insurance company is trying to be profitable. Sometimes these companies make decisions that push tenured and loyal clients away. While we have little control over these companies and their underwriting guidelines, we have control over who we work with. Not every company will be a good fit for everyone! In fact, that is quite the opposite, the broader the clientele an insurance company writes for, the more expensive it is for save clients and cheaper for riskier clients.
If you are interested in working with an independent broker, fill out the form below and let’s see if we would be a good fit!