“Oh, we cannot do that because my insurance company will never approve of it!”

“If I have a little fender bender my rates will go up!”

How often have we heard that we just have no say with the insurance companies because all they do is collect premiums and deny claims?

Or, my favorite, your rates are just too high, I cannot afford it!!

When the first insurance companies began, they were merely a community co-op. Some smart business men thought that if they collected a small amount of money from the populace, they could help pay for big claims. If your house burned down or you died, the family could get some small re-imbursement.

The idea grew and the owners of the co-ops began to invest to help grow the funds. If the fund was larger they could help more people and it would not cost anyone very much. Through the years, their funds did grow and people were paid when the bread winner died.

At one time, a life insurance document was a single page and the beneficiary designation always read: “Pay proceeds to bearer”. So the first person to go through the deceased belongings got the “spoils”, because all he/she had to do was present the document and get the money! Needless to say, that system changed and evolved until today you must have a named beneficiary. The beneficiary must have an insurable interest……..meaning they will suffer financially upon the death of the policy holder.

Then came property and casualty and the fun really began.
Now, you want to insure your car, pick up, etc, anything that moves around the country.

As you have probably noticed there is some difference in premiums for what appears to be the same coverage, if you ask different companies.

Behind the scenes the rates are largely based on your driving habits, including how many miles you drive and what the accident ratio is in your area. So if you live in a community or city with a lot of “crummy” drivers the rates will be higher for everyone in that problem age group.

When we start to complain about insurance companies, we need to remember that there is a lot of cost involved so that you can have a policy and be protected.

Always rely on your agent for the best advice. They put in a lot hours of study and research on your behalf. Believe it or not, it matters a lot to them if you are happy. They have a lot of guidelines in which to operate, so be patient when you chose your agent. He/She will be there for you when you need them the most.

Post Provided by Jo Anne Morris [Email Her]