2011 Is "Bad Claims" Year For Wisconsin

Written by
December 6th, 2011

The total 2011 weather related claim damage in the U.S. is $35 billion (not including hurricane Irene), according to a new report issued by the National Oceanic and Atmospheric Association.  Although Wisconsin didn’t have any hurricanes, we had another “bad claims” year due to excessive hail, water, wind and ice dams. Here are some recent headlines from the past few months:

  • American Family Catastrophe Claim Losses Surpass $1 Billion.
  • S&P Lowers Outlook on Allstate and Subs to Negative; Affirms Ratings
  • Hartford Q3 Profit Falls on Natural Disasters
  • Erie Indemnity Posts $47M Q3 Profit, Down 13% From Last Year
  • State Auto Financial Reports Loss of $58.7M in Q3

I will often hear clients object about insurance companies making money.  I always tell them that profitable insurance companies keep rates stable.  Based on the headlines above, many people can expect to see some relatively significant rate increases in 2012 with some insurance carriers.   Here’s the great news: despite the poor claims year Wisconsin had, the carriers R&R Insurance represents are NOT on this list.  We expect the rates for our clients to remain relatively stable, and anticipate the average rate increase to hover around 6-8% this year.  This again is excellent based on what is happening in our market and nationally.

Ideas for minimizing rate increases:

  1. Knowing that you shouldn’t submit smaller claims reinforces having a higher deductible – go as high as you can afford if you were to have a significant incident.  You will  see larger premium savings by carrying larger deductibles.
  2. Make sure that R&R is insuring everything for you.  Having your auto with us and your home with another agency does not get you the best rates.  Plus, coverage on separate policies can be duplicated or omitted by doing this.
  3. Opting for Electronic Funds Transfer (EFT) to have your payments spread out over 12 months can also help with the premium cost.

More ways to save money on your home and auto insurance. If you like these money saving tips, we have a lot more in our e-newsletter, sign up for our e-newsletter today!

Wisconsin residents, if you are not a client with R&R Insurance right now, consider getting a proposal from us.  We represent multiple insurance companies and can find the best program suited for you at a great price.

As always, feel free to share this with your friends, relatives and coworkers.  Please contact one of our knowledgebrokers here at R&R Insurance should you have any questions at all.  Thank you everyone for your business! Have a safe and happy holiday season!

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