What is the best "answer" to tell insured that their insurance premium increased (Auto & Home). THX?

Question

What is the best "answer" to tell insured that their insurance premium increased (Auto & Home). THX?

Answer 1

Homeowners:   With all the recent catastrophes in the world - the cost of building supplies has risen, so the cost of rebuilding your house after a loss has risen - your insurance cost has risen to cover that.

Auto:    This is a bit harder... usually I look for changes on the policy - different car? newer car?  points on a driver? new driver with less experience on the road?

Usually the vehicle # is a good answer - the rates on a certain vehicle are set by the state - and are set by:

percentage of accidents & the severity of the accidents in that specific vehicle, the likeliness of the vehicle being stolen (and the are you live in has impact on that as well), the cost of parts is dependant on vehicle - for example.. Fords, Chevys and Hondas are least expensive to replace parts on... Mitsubishis and Nissans are MOST expensive to replace parts (unless they have a sports car)

Answer 2

It depends what type of policy and why the premium increased. The best answer is to tell them the truth. If the premium increased because they had an accident and this caused the premium to increase, tell them that. If it increased because the building limit increased to account for inflation, tell them this. If it increased because the insurers rates increased, thell them this. The best way to present this is to shop your other markets to see if someone can offer a better rate. Even if it's only $20 cheaper at least you can show the client that you have done some work on their behalf. If you can't find anyone cheaper tell them this (make sure you actually do the work, don't just say there isn't anyone cheaper). Many will appreciate the work and will stay with you, some may decide that if you can find someone cheaper, maybe others will as well and will shop around. However giving some no options other than, "Here's your renewal policy, here's your invoice, pay it", and being something other than truthful with your client will not garner much appreciation from your them. It may even breed resentment!

Answer 3

Go with what GAMBIT is telling you.  Honesty is always the best policy.  If the insured feels they will be getting the rate increase no matter where they go, then they will likely stay with you.  I would research their policies to make sure they weren't given a decrease on some small part of the policy so that way they can at least feel they are getting something back.

Answer 4

This is to inform you that effective ____, your premium will increase to ______.