Do You Hate Insurance?

Everyone hates insurance in OK, because it costs too much and they never have to use it. I hear this at least once a day. People call and say they have had insurance for ten years, never had to use it, and want to know why their rates have increased. Insurance works due to the law of large numbers. Meaning, companies insure millions of people rather than a couple hundred. This allows for there to be lots of losses, which there are, and still allow the companies to come out profitable, sometimes. The insurance companies do not always make money, especially here in Oklahoma. One of the companies I insure with paid out three dollars for every dollar they brought in. In case you haven’t realized there are a lot of storms in our state. And roofs are very expensive. All it takes is one person in a neighborhood getting a roof replaced, and the next thing I know everyone in that neighborhood I insure calls and says “John down the road got a new roof so I think I need a new roof”. If we turn it in as a claim and the adjustor comes out and finds no damage and there in no money paid, it is still a claim on your insurance. Therefore, you want to be sure that you do have damage before calling your agent and turning in a claim.

Nearly every person I speak with wants the cheapest, highest deductible coverage with no extras. This is not the response I hear once there has been a claim. Everyone then thinks they had all the extras, rental car, towing, roadside assistance, and low deductibles. I offer this coverage up front, and you can add them at a later point. You cannot add them after an accident. Apparently a lot of people don’t know this. I cannot count the number of times someone calls from the side of the road and wants to know if they have comp and collision, and I say no and they want to add it after hitting the deer in the road. Insurance does not work that way.

Okay, time for the bad news. Rates are increasing statewide. The good news is RCI is an independent agency and we represent several companies. So you have an option when your rate increases. You are not stuck with only having an agent that can offer one company. I am sure several clients will be upset and shop around for cheaper coverage, but you will find all companies are having rate increases. The difference here is I am telling you about it. Other companies will spend a billion dollars advertising how low their rates are when in fact, the larger companies that you see on TV are having the highest increases. Do not lower your coverage to get cheaper rates! You will have an accident or claim on your home, and you will be upset you lowered your coverage to save the $50. My job is to make sure you and your family are protected in case of an accident. The Oklahoma insurance I provide you with will protect you, and provide you with security.

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