As a garage or auto body shop owner, you know that having garage insurance is critical in order to stay in business. That being said, you continue to pay an affordable premium and continue to work without having any claims. Suddenly, your premium has jumped in cost. What gives?
This is a common scenario and question from other garage and auto body shop owners. As your reliable insurance agency, we have an answer for you. Allow us to explain…
Insurance companies receive income from two sources: the premium charged to insurers and investment income. They use the premiums paid to invest in the marketplace to supplement their revenues. In the past, these investments could result in returns from 3-10%. However, if you have looked at your retirement account in recent years, you know invest income has dropped and this has affected insurance companies well.
Insurance companies are now faced with two choices:
#1: Increase the policyholder’s premium.
#2: Implement a very strict underwriting criterion in hopes of reducing losses.
These are the two main reasons why you may have seen a spike in your garage insurance premium. However, there are always ways to fight off these growing costs. If your garage or auto body shop can demonstrate safety, training and other efforts to lower the risks in the workplace, you may be able to bring those rising costs back down. Never hesitate to speak with us at Wolpert Insurance. We would be happy to talk about techniques and procedures in order to lower your premium!