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Have you received a call from your insurance agent notifying you of premium increases this year? You will! Prepare to allocate some of your winter profits towards your 2001 renewal.
The insurance industry, which includes propane insurers, has not received an overall rate increase in 15 years. During 1986, the insurance market increased their rates significantly and restricted coverage. Since then, insurers have reduced their prices annually to retain their market share. This has resulted in several insurers going bankrupt, others becoming financially impaired and others departing the propane marketplace due to insufficient premium rates. Fewer insurers mean less competition and higher premium rates.
What can you do to prevent these increases?
Your insurance agent receives between 15-20 percent of your total premium for the placement of your insurance program. This figure varies based on your premium size.
I would suggest that you ask your agent how much they receive from your programs. If you believe they receive too much, you should advise your agent that you want to move to a "fee" based program. Here is how it works:
You have saved $5,000 off of your insurance costs with a minimum amount of effort. …