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Frequently Asked Questions - Client Cause & Affect to Rate Increases

FAQs - Client Cause & Affect to Rate Increases

Premium increases can also be caused by Client related activities – filing a claim, adding drivers, changing vehicles and increasing covered property – that have a monetary affect on how much the company values the protection. Because most of these changes take place at various times during the policy, the full affect of the changes on the overall premium may not be fully realized until the policy renews. If a client changes vehicles one month before renewal and it "goes up fifty bucks", they may not associate that change to the $600 increase to their annual premium. Likewise, an accident that happens during the policy period may not be reflected in their monthly payments but will appear as part of their renewal premium.

S.M.A.R.T. Service from a Foy Agent - “I can understand your concern about the premium increase due to the claim paid earlier this year and yes, that is why you carry insurance, I want to make sure that we have applied all eligible discounts to help offset any increases in premium. We should also review your current limits to make sure that, if you ever have to file a claim in the future, we have the right coverage and deductibles in place before anything happens”

S.M.A.R.T. Service from a Foy Agent -  “Now that your son has gotten his license, he is considered an additional driver on the policy and that is what has caused the premium increase.  There are a couple of discounts we may be able to apply to offset some of that increase and I’d like to review those with you at this time.  Is he a good student? Has he completed a driver’s education class at his school?”

S.M.A.R.T. Service from a Foy Agent - “In addition to applying those discounts, I’d also like to take a few minutes to review your current liability limits.  Besides his personal safety, what else concerns you about having an inexperienced driver listed on your policy? If he were to have an accident, do you believe the current policy limits would be enough to protect your home, personal property, investments, savings and future wages?”

S.M.A.R.T. Service from a Foy Agent -  “I remember when you added that new SUV last month and how happy you were with the small change in premium that created. We had also talked about that being the just for the one month and now this amount reflects the entire year’s premium. To help offset that increase, I’d like to take a look at a couple of available discounts – multi-vehicle, defensive driver, homeowner, account discount – that will help increase your policy’s overall value. I see we are applying a ‘homeowner’ discount, but I see that we don’t write your homeowners policy.  When was the last time your homeowner’s policy was reviewed for eligible discounts being applied?”

S.M.A.R.T. Question from a Foy Agent - “The premium increase is due to the increased costs of replacing your home in the case of a loss. While we are all feeling the effects of the real estate values of our homes, this value is for the replacement cost which includes labor and materials – each of which increase every year - needed to rebuild your home.  If you were to have a total loss of property, what percentage of your home would you expect to have replaced?”

S.M.A.R.T. Question from a Foy Agent - “Congratulations on the new garage and workshop you built this year and I hope you have hours worth of enjoyment using it.  I just wanted to check in with you before the policy renews to make sure we protect the time and money you have invested in that beautiful new building. Do you think that 10% of your property coverage will be enough to rebuild that garage if it were to be destroyed?”

S.M.A.R.T. Question from a Foy Agent - “When you consider replacing everything in your home, do you think that $20,000 would be enough for all new furnishings, electronics, clothing, appliances and accessories? Would you prefer to replace them with similar items from the store you originally purchased them or browse Goodwill or Salvation Army for replacements?”

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