FOR IMMEDIATE RELEASE
You may have heard of the book, What to Expect When You’re Expecting – an old favorite of expectant families for years… a book title you haven’t seen though is What to Expect When Your Insurance Is Non-Renewed.
It was recently reported that a fairly large insurance program that was available to repossession agency operations has exited the market. This news is certain to send some into an all-out panic as they desperately search for a new insurance market. Losing your insurance carrier can be a scary process, but in our experience, here are few notes about what to expect:
1. Expect your agent to be reassuring that he/she will find you another market. No one likes the thought of losing business and insurance agents really do not want to disappoint their clients. But, this is a tough market, so you may not want to rely solely on your agent’s sincere desire to find you other coverage and find yourself run up to the 11th Hour and getting a Dear John letter from your agent advising you that they weren’t able to place your coverage. Be Proactive!
2. Expect your rates to be higher. RSIG has said for years that the low prices repossessors may leave usfor, or tell us they have when coming to us, are too low for the market to sustain. That is why carriers leave the market. So, if you are able to find a new carrier individually in the market,expect higher rates. No one likes tohave to pay more, especially when you are being paid less, but insurance companies cannot control what rates or under what terms you are willing to work for; and successful/long term insurance providers know they have to price their policies so they can pay claims and the carrier can still make a profit.
3. Expect to be declined. If you have been surfing the insurance market place year after year with different carriers to get the cheapest rate AND you have sustained losses (even just a single claim); expect to hear more“No” than “Yes” answers on your submission. Unfortunately, insurance is becoming less relationship based and more numbers based than it used to be. So if you have been going from carrier to carrier for lower rates and have had losses, then your premiums paid in may be less than losses paid out and you’re not a profitable account. Not being a profitable account, in a pure numbers world, means the carrier won’t be interested.
4. Expect to have to answer more questions and provide more information. Underwriters in today’s market are all about data. So if you’ve had losses, expect toshare your plan on how you’re avoiding these losses in the future. If you have drivers with violations and suspensions, expect to be asked to explain why you’re willing to let these drivers in your vehicles with what amounts to a blank check and to explain your management and hiring practices.
About RSIG – Recovery Specialist Insurance Group has been supporting and insuring professional repossessors exclusively for more than 30 years. We survive the ebbs and flows of the market with proper pricing, strong underwriting and a dedicated focus on education, training and the success of this industry. Contact RSIG today,703.365.0199 or www.rsig.com,to see if we can help with your repossession insurance and training needs.
Facebook Comments