As an agency owner for more than a decade, I get the question of why my rates are going up about 10 times a day.

I know this can be a headache, especially when you never used your insurance in a long time and you pay your premiums on time.

Folks, insurance rates do not generally go down, they typically only go up.  Just like anything else in life, insurance rates inflate due to the cost of living, natural disasters, more expensive to fix vehicles, texting and driving and many more factors.  I  mean sure if you have an accident fall off, or a claim goes past 3 to 5 years, yes your rates will go down.  But if you are claim free, you will naturally see a rate increase every time you renew your policy.  I am a consumer myself, and that has been happening to me for as long as I have had insurance.

Right as we speak, insurers are filing for rate increased every quarter (6.9% each time). I am talking ALL of the big companies such as State Farm, GEICO, Farmers, Travelers, Safeco, Mercury etc.

It is inevitable, and trust me if you jump around, you will only continue to jump around from agency to agency, from carrier to carrier.

Don’t swim up stream; focus on what matters most!

I have been doing this for a long time. Take it from me, don’t waste your precious time focusing just on price (I mean yes make sure your rate is competitive) but rather than be fixated on price alone, target your attention into the following areas:

  1. Am I working with a independent Agent/broker who can combat this problem by shopping more companies?
  2. What is being covered and what is not?
  3. What type of coverage do I have?
  4. How will my carrier perform if I have a claim?
  5. Will my agency/agent be an advocate for me when I need them?
  6. Is my agent/agency accessible?
  7. Does my agent/agency have my best interest in mind?
  8. Can I depend on my agent/agency to advise me in protecting my assets properly?
  9. Are my deductibles too high?
  10. Should I have a Commercial Insurance policy or personal?


Insurance is your core financial Defensive strategy, focus on Value then price.

You get what you pay for.  Be Value Based when it comes to insurance.  There are host of things you can be frugal about, don’t be cheap when it comes to insurance.  When you needed it most, the last thing you want is not being able to get in touch with your agent. Not having a carrier with outstanding customer service. Don’t wait until an accident to find out you had the wrong coverage.

When disaster happens, why use your hard earned cash? An Insurance policy transfers your risk for an exchange of premium to an insurance company which indemnifies you thus leaving your asset portfolio equtible.

Leave me a comment below and let’s discuss your reaction to what I am saying.


Kash Fadaie