Auto Insurance Louisville KY Serving Louisville for Over 35 years!
(502) 933-2255 | (800) 468-1215
Auto & Home

Insurance rates are always a calculation of assumed risk. Regardless of whether it is homeowners, auto, life, or business coverage, your rates are always a result of your calculated risk level. For example, if you have a history of car accidents and several speeding tickets, those add up to assume that you are a high-risk driver. As a high-risk driver, you will pay higher rates because you are likely to cause an accident.

How Insurers Calculate Business Insurance RatesTo find low cost insurance, the best method is to minimize your risk. In order to successfully minimize risk, it is important to understand which factors insurers use to calculate risk, and what you can do to influence those factors.

1. Choosing a Company: Insurance rates for the exact same customer can vary widely from one company to another. Some companies may offer a lower rate to a particular type of business, or location, etc. The best way to determine this is by shopping around for the best value. Be sure to obtain quotes from two or three companies to get a good comparison.

2. Type of business: The second factor that goes into determining business insurance rates is the type of business you are in. Those in a high-loss industry such as construction, trucking, medical, etc., will be charged higher business insurance rates than those in low-risk industries. Unfortunately, there is nothing you can do about this unless you’re willing to switch industries.

3. Deductible: The golden rule with insurance rates is to raise your deductible. A lower deductible will result in higher business insurance rates. A higher deductible will lower monthly premiums.

4. Coverage Level: Your level of coverage has a huge impact on your insurance rates. As with anything else, the more you buy, the more it costs. Keep costs low by understanding the coverage you need and avoid purchasing over the top plans that you do not need.

5. Location: Another factor considered when determining insurance rates is your company location. If you are in a high-crime or severe weather area, that makes you high risk and your insurance will be more expensive than if you lived in a different area. Again, there is little that you can do to change this factor.

6. Claims history: Insurers want customers who have a minimal claim history. A heavy claims history shows insurance companies you are expensive to insure, a small claim history shows you are low risk and do not file claims often.

The best method for business owners to get affordable insurance coverage is to shop around, compare several different insurers, minimize risk, raise the deductible, and bundle wherever possible. Insurance companies often reward multi-policies or loyal customers, so sticking with one insurance company for several policies is a great way to save money.

By Matt Reynolds - Google+
Posted 10:00 AM

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive

View Mobile Version
  Connect With Us: Social Social Social Social Social
Site Links

Get A Quote
Our Companies
About Us
Contact Us

Claude Reynolds Insurance Agency, Inc. BBB Business Review

Louisville Auto Insurance Review

Icon Visit Us

Claude Reynolds Insurance Agency Inc.
6801 Dixie Hwy Suite 232
Louisville, KY 40258
Phone: 502-933-2255
Fax: 502-933-5057
Map & Directions
Claude Reynolds Insurance Agency Inc. | 6801 Dixie Hwy Suite 232, Louisville, KY 40258 | 502-933-2255
Powered by Insurance Website Builder | Online Marketing by One Thing Marketing