Insurance companies are being bailed out by the billions of dollars. Some are withdrawing from the State of Oregon and are no longer actively soliciting new customers. Yes they continue to service existing insureds but then notify you at the end of your contract that they will no longer continue to insure you, leaving you stranded.
In these times of uncertainty a driver wants assurance that his policy will be good and pay if there is a claim. He wants to know his prices will stay the same from month to month. He needs to know that his insurance company will most likely be around tomorrow. These are the kind of companies we try to represent.
Low prices are always desirable. To get the service one expects from an auto insurance company you may have to pay a little more than the company coming into the state trying to "buy" your business. Buying your business means the auto insurance company has an infusion of cash from some source and charges below market prices in the beginning only to raise them after six months or a year. They think you aren't going to move and have tried to figure out how much of increase you are willing to take before you will move. They will lose some, yes, but many will stay because of the cost of time and money to switch after the rate goes up. This practice is a huge gamble for the car insurance company trying to enter into Oregon. If the insurance carrier experiences greater than expected losses, they might find themselves in a illiquid situation and have to take dramatic increases in premium charged to make up for the previous period shortfall or cancel a whole bunch of unprofitable policies. This leaves the image of the company in the minds of the consumers as unstable and unreliable.
Rate increases are a necessary part of the insurance business, that is true. Cost of doing business (expenses, salaries, commissions, lawyer fees, claims adjusters, body shops, doctors, hospitals, etc.) is increasing constantly. The insurance companies pass these costs on to you, the insurance consumer in the form of higher premiums. Profit margins are narrowing. Investments are more unstable than ever before. It takes a solid management, marketing and underwriting (selection process) plan to survive in Oregon in these tough times.
Go with an insurance company who has a proven track record. Go with an insurer who's A.M. Best Rating of A. A.M. Best keeps track of all these factors and rates companies' performance in key areas so you the consumer have a little better chance than just luck of choosing a reliable insurance company.
Call us today. We will give an Oregon automobile insurance quote from top A rated carriers.