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The Road More Traveled


Receiving your auto insurance renewal and seeing that your rates have increased can feel very personal. I know, I’ve had that feeling on a number of occasions over the years. Even understanding how insurance rates are set, it doesn’t make me feel any better to see a rate increase.

Thoughts that may cross your mind:

  • “I’ve been with the same company for years!”
  • “I pay on time; my driving record’s clear!”
  • “But my cars are getting older!”

The reality is our region continues to show immense population growth, resulting in more traffic congestion without room to build more lanes. The more cars on the road, the more accidents and fender benders happen, on a daily basis.

Here are a few key indicators in what’s driving auto rates higher and higher:

  • Increasing population and congestion resulting in greater claims frequency
  • A dramatic rise in distracted driving due to texting and new gadgets (please leave your phone in your pocket or purse while driving!)
  • Advanced technology (sensors in bumpers, for example) makes for expensive repairs
  • Double-digit inflation in medical costs, year after year

It’s important to note, in 2016 insurance companies reported paying as much as $1.13 in claims and expenses for every $1.00 of premium paid by customers. As a significant result, almost every auto insurance company in the state has requested rate re-structuring. We are seeing some clients impacted more than others for a wide variety of reasons.

There is one thing I know for sure, this is not the time to try to navigate the insurance landscape alone – especially knowing how important it is to be protected properly on busy roads. Our team stands to partner with you to review your current coverage options and potential discounts. That’s right, even in this rate environment, some carriers like PEMCO have introduced new discounts to help control your costs. We invite your thoughts, concerns, and questions and look forward to talking with you.

We are so grateful to serve you!

– Christopher Togawa