bigredfish
Known around here
No offense but the insurance companies in general are printing money. Stupid sums of profit. $100 from their 1st year is nothing.
Caught this guy taking pictures...
- Thread starter JNDATHP
- Start date
That is not entirely true for some companies. I am currently switching homeowners policies (for my MIL) as the one we got last year decided that they no longer cover homes with less that a 150AMP service. Hers is 100AMPS. The new policy has a charge for Inspection Fee. I pay that up front, along with an Application Fee.
I agree with you.
When COVID started, the larger insurance companies were the first to offer us any assistance - including and not limited to low interest rate loans.
One thing people don't realize, however, is how the low interest rate environment has increased premiums and underwriting pressure. They used to be able to operate at over 100% loss ratio. How does that make sense? Because they could make up for the claim losses through investments and re-insurance. Now that interest rates are so low, everyone's underwriting has tightened up considerably.
Those up front fees you were charged sound like an agency fee and not a carrier fee. Those vary by state. We are not allowed to charge agency fees (that would go straight in our agency pocket) unless we apply and get SC DOI approval. For example, some agencies charge a payment processing fee if you pay your monthly premium in person at their office.
If they are carrier fees- most of those are labeled "fees" to avoid paying us commission. We don't get paid commission on the monthly bill fees or general policy fees since that money is not considered "premium."
I guess it depends on how you look at it. If they weren't doing those exterior inspections would your premium be lower or the same?