Policy Renewals – The In-Between Years

I’m currently working on about a dozen insurance bid projects.  When we finish each, we will have a new problem:  What will the premium be next year?

No matter how good a job I do this year, next year is a mystery.

Sometimes I can get the insurance company to agree on a consistent pricing structure – if the bid was submitted using 22% credits, the renewal will be issued using next year’s rates and premium basis, with a 22% credit.

Few underwriters are agreeing to that now.

Most insurance advisors suggest bidding only every three years or so.  However, that leaves insurance buyers at the mercy of next year’s underwriter.

What if this year Podunk Mutual is very competitive, and next year a new underwriter decides to double the premium?  Add to that the “tradition” of delivering renewal quotes four days before the policy expiration, and we find ourselves with an uncomfortable squeezing sensation in some rather tender areas.

Here’s a solution…

Insist that your current insurer delivers the renewal quotes to you 60 days before the policy expires.  With quote in hand, you can decide what to do.

If your insurer provides you with a renewal similar to last year’s policy, you probably will decide to stay with what you have (modifying the coverage to meet your current needs), and everyone is happy.

A steep increase or change in policy terms might trigger another round of alternate quotes.

Getting quotes 60 days ahead of time gives you some options.