TELL ME WHY AUTO INSURANCE RATES ARE LIKELY TO INCREASE IN 2018
Ocean Harbor insurance is a home and auto insurance scheme through which you can insure your property and vehicles from any sort of unforeseen disasters such as, fire, theft, lightning, and wind. To ensure full safety of your property you can opt for a policy that would cover all your personal structures including the temporary provisions, thus ensuring full security and safety. You can opt for an ocean harbor insurance policy for all sorts of properties; be it a personal possession or a commercial possession. There are certain policies under which you can cover multiple homes in one plan. Opting for such policies would be ideal if you own or rent a flat in apartments or a group house. Under such plans, you might end up with little fewer premiums as you opt for a specific coverage. Riders on a basic policy would be provided in exchange for an additional premium.
Besides property ocean harbor insurance also has auto insurance products that cover both bodily injuries and physical damages to the vehicle insured. However, while opting auto insurance you must have the vehicle registered under the insured name and must be any vehicle within four wheels. Claims on the name of insured only are covered. If the vehicle is driven by someone else when contracting an accident the insured cannot claim. However, you can cover for you, your family members under certain plans provided if you opt for it while executing a contract with the insurer. Almost all ocean harbor auto insurance policies cover medical claims up to 80%, 60% of income loss and replacement assistance post accident and death cover. All these benefits would be provided only when you opt for them specifically.
Besides regular auto insurance, there are certain comprehensive insurance plans by ocean harbor insurance that are meant to provide coverage to the vehicle for any sort of perils such as, fire, collision or any indirect damage to the vehicle. However, a comprehensive insurance would be provided only to the owned vehicles. Any temporarily hired or rented vehicles are not eligible for insurance under the comprehensive category. Opting for a home or auto insurance is an art as well as science. Wonder, why is it an art as well as science? While choosing a policy cover you must do a certain amount of research to make sure you would opt for the one that benefits you the most while being pocket-friendly. Perhaps, this exploration will help you in articulating your needs and will assist you in inquiring for riders, thus making the act of choosing a policy an art.
If you felt your auto insurance rates increased an unjustifiably high amount in 2015, 2016 and 2017, there isnt much good news for 2018. Auto insurance companies posted another year with slim to negative profit margins due to an uptick in costly car accidents and disastrous storms. The likely result will be more rate increases in the coming years--even for great drivers.
Like any business, companies need to sustain higher revenue than expenses in order to stay viable. Auto insurance is no different; companies make money off of the premiums customers pay, but lose money when they fulfill their obligation to pay for their customers damages. They also have a host of operating expenses to pay, including agent compensation and advertising.
The proportion of expenses to revenue is called the "combined loss ratio," and whenever it is above 100%, the company loses more money than it is earning. In 2016, only two of the top 10 auto insurance companies in the country had combined ratios below 100%--and just barely.
So even if you have never been in an accident, your rates are still going up because the auto insurers are trying to bring their ratios back below 100%. Imagine a major drought destroying part of a farms crops, and then the farm charging more for the crops that survived in order to make up for the ones they lost--it is the same principle with your auto insurer.