Sackrison Insurance Agency | Napa

As residents of the great state of California, you are no doubt noticing some increases when it comes to some of your insurance policies. Have you ever wondered who makes the decisions when it comes to pricing, and why rates increase?

Let’s take a look at two of the most common policy types that affect many Californians and why their prices have risen:

Car insurance premiums have been on a steady rise.

There are more than a few reasons for that, but here are several of the biggies. Distraction has always been an issue for drivers.

Whether it is fiddling with the radio to find a favorite station, dealing with sibling rivalry that’s threatening to turn your backseat into World War III, or trying to eat a juicy burger from the drive-through without dripping any sauce and toppings into your lap, distractions are a constant for drivers.

With the introduction of cellphones to the plethora of pre-existing distractions, collisions have become such a huge issue that insurers have no choice but to increase rates. Also, thanks to many improvements to modern vehicles such as rear cameras, Bluetooth, and all of the other safety features that are becoming mandatory, the price of repairs has gone way up.

In order to make sure your policy covers the cost of those repairs, your insurance rates reflect that, too.

With well over 26 million drivers, California has a larger number of licensed drivers than any other state. More vehicles on the road equals more potential accidents.

Homeowners insurance is a whole different story.

Wildfires have wreaked havoc across vast areas of California in recent years.

Because of this, many insurers won’t even offer insurance to homeowners in rural areas that are at high risk for wildfires.

Prices reflect how far you are located from the nearest fire station, and how much of a risk wildfire is in your vicinity.

Some insurance companies have been forced to file for bankruptcy after the majority of their customers filed claims following losses to wildfire.

Some premiums have risen through the roof, and much real estate is going unsold after potential buyers find out there are no insurers willing to sell them homeowners insurance.

Insurance companies can’t just decide to raise their rates with no limits.

The California Department of Insurance (DOI) is there for the consumers, making the final decision when it comes to price hikes.

In normal conditions, there is a limit to the percentage of increase that is allowed.

​In situations like the wildfires, it only makes sense to increase rates rapidly to ensure that the customers will not be disappointed due to the sudden failure of their insurance company.

After all, you are only covered for as long as your insurance company is in good financial standing.

Thankfully you have the DOI in your corner, making sure your insurance agent/broker is licensed, your policies aren’t too high, and you are served fairly by your insurer.

As always, if you have any questions, I am glad to discuss the topic of insurance with you, and welcome your phone calls.

The acronym DOI stands for the Department of Insurance.

California has the largest insurance market in the United States; the fourth largest in the world.

The state of California strives to protect the consumer, making sure they are treated fairly and that their claims are dealt with in a timely manner.

As a consumer, your rights are important, and you should know how to make a complaint.

The California Department of Insurance website is a great place to check out if you are curious about how the game of insurance is played.

They are like the referee, making sure that all is played fairly between the insurers, the agents/brokers, and the consumers.

If you suspect that you are not being treated in the right manner or in a decent time frame, the DOI can help determine if your contract is being breached.

Archie’s story

Archie lived in a nice neighborhood, had a few kids, a good job, and some vacation time saved up.

He and his wife decided to invest in a spacious, new motorhome. The whole family spent time in the evenings planning out a long road trip across the States.

The motorhome was purchased, the road trip was fun, and memories were made to last a lifetime.

Archie found a friend with some extra storage space in a secure outbuilding that fit his RV perfectly.

What he didn’t count on was a powerful windstorm that ripped through his friend’s farm three weeks after the camper was placed in storage.

The roof collapsed, crushing part of the vehicle.

When Archie and his wife brought it in to get an estimate for the cost for repairs, they were shocked to hear what the total came to.

Both Archie’s insurance company and his friend’s homeowners insurance had a drawn-out dispute over which company should cover the damage and how much, if any, should be shared.

The dispute lasted so long that two planned vacations had to be canceled before Archie finally contacted the California Department of Insurance to voice his complaint.

They quickly intervened and got things rolling, causing both companies to come to an understanding so Archie could finally be reimbursed for the damages.

The RV was repaired, and the family enjoyed many more miles on the road.

If you have questions about a claim that you suspect is not being handled properly, you should definitely check out the California Department of Insurance.

Their website is informative and they have nearly 1,400 employees working hard to make sure you as the consumer are being treated fairly. Your rights matter and you have the power to pursue any suspected unfair treatment.

​If you have had a bad experience with your insurance provider and are looking for other options, give me a call.

I am glad to answer questions and help you find the coverage you need for the situation you are in.