RATES CONTINUE TO RISE
By Roland L. Enz - President, California Plus Insurance Services, Inc.

It is hard to believe that the Holiday Season is upon us. For the most part we will be caught up in our respective faith’s activities. I find it difficult to go into these Holidays with the shadow of September 11 looming in my memory. Not in our (or our parents') lifetime have we witnessed not only an attack by an outside force upon our mainland, but such an enormous loss of life in a singe event. All of this pain and suffering from a misguided group, using religion as their mantra.

It is difficult to comprehend these insidious acts that have brought so much destruction to our nation’s doorstep. The one bright spot is the renewal of patriotism that this country is now experiencing. We have come together as a single voice, not only in our grieving for those who have lost their lives and those families that have lost family members and friends, but in our support for our government’s actions. By displaying the colors of our nation on our cars, trucks, businesses and homes, we have all shown our patriotic spirit and, together, we now stand truly united.

This season’s most important message should be tolerance and understanding. Take time to understand other people and their cultures that share our great country. Life will go on and we will celebrate the season. We will embrace our loved ones, family, and friends in a single moment, forgetting the recent past tragedies, if but only for a moment.

Seasons Greetings from my family to yours and I pray that this segment of our lives is over and that we can look forward to a prosperous new year. And now on to the topic at hand - insurance rates.

Insurance rates continue to rise. This not only is a result of the recent past, but a continuous trend. Losses are a major part of the equation, as well as a shrinking market. Those of you that have had renewals in the past six months have most likely found increased premiums. Unfortunately, rates will continue to rise.

Many companies have increased their rates by as much as twenty-five percent. For the most part, those of you that have existing policies enforce will find that your current carrier will probably offer you a competitive renewal. New ventures and first time insurance buyers should rely on a responsible broker to represent them. If you go into the market and call every broker that you can, you will only dilute those agents that will work for you. If I find that a prospect has done this, my enthusiasm to continue is diminished. Pick one broker and give him all of the information he needs. Loss Runs are key to obtaining competitive rate quotes. Most companies want three years of history. Be sure to ask for these loss runs when your current coverages expire.

Every aspect of insurance is increasing. Reinsurance is a major component of all premiums. Losses in excess of 100% have plagued that part of the industry for years. Most insurance is reissued through companies that specialize in that part of the market. Lloyds of London provides many of you with physical damage and cargo coverages. You will now find that coverages will be reduced and rates will rise.

Insurance, for the most part, has had a relative stable ride for a decade. Your auto insurance is also on the rise. Expect to pay 5 to 8 percent more for your personal auto insurance. In 2000, auto insurers spent $9.2 billion on California claims, a 17 percent increase from $7.9 billion the previous year.

For those of you that have had problems, your driving record will become a major influence on your ability to attract low rates. If the market will not insure you, the Assigned Risk Program may be your only option. Keep in mind that this program only provides you with liability insurance - other coverages such as Physical Damage and Cargo will have to go through Lloyds of London. If you run long haul (200 or more miles), the Assigned Risk Program is competitive, but its rates are exorbitant for local and intermediate drivers.

Here are some quick and easy tips for procuring a competitive insurance quote: 1) Provide complete and honest information; 2) Secure Loss Runs from previous insurance carriers for the past 3 years; 3) Understand all of your coverages. If you have a problem or don't understand something, discuss it with your agent.

If you have any comments or if you would like to discuss an insurance question, I can be reached through California Plus Insurance Service at 1-800-699-7101.