Ohio auto insurance companies are having their own version of March madness! While this is a fun and exciting time to watch college basketball, things aren't so pleasant when auto insurance companies don't do well. 2016 wasn't a good year for the auto insurance industry. While some companies did do very well, other companies lost a lot of money. As a result a lot of the companies that lost money (or made very little) are making drastic adjustments.
Some of these adjustments include:
This article will help you understand why some auto insurance companies are in the poor shape they are in. Understanding why this is happening helps you to keep an overall pulse on the auto insurance industry. This article will also help those of you who have already felt the negative impact of this downturn, and give you some ideas of how to minimize the effects.
Of course, only a small percentage of auto insurance companies lost money. A small percentage did very well. In between is the bulk of companies that did ok, but didn't make the profits they expected to make. It's the companies that had poor to mediocre results that are raising premiums.
Major reasons why some Ohio auto insurance companies had a bad year
Having lower costs in premium combined with higher costs in claims causes problems for many companies. Something's gotta give! This is why prices are going up.
What to do if your auto insurance premium goes up
If you get bit by the higher premium bug, the best thing you can do for yourself is shop around with other auto insurance companies. I can not stress that enough! Comparing quotes from other insurance companies is your single best way of keeping auto insurance premiums down. It is recommended that people should shop around for insurance at least once every two years. But statistics show that only a small percentage of people follow that advice. Some people go years without getting a quote from other companies. Oddly enough, those are the same people who tend to be offered the highest amount of savings when and if they do finally shop around.
Key tips about how to shop around for a lower auto insurance price
Whether you prefer to get an auto insurance quote online or over the phone really doesn't matter. What matters is WHO you are getting the quotes from:
Summary: The auto insurance industry is no different than the stock market. There are periods of good and bad. But this is nothing to worry about in the long run. Like a bear market with stocks, you simply need to make adjustments in order to ride the storm out. So don't be afraid to shop around for other auto insurance. Chances are more often than not that you will save money by doing so.
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Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..