How does other states insurance affect New York State?

Tom’s Thursday Thoughts:

Insurance can often be confusing & misunderstood.

When a national insurance company says they have a 128% loss ratio, that means they are losing $28 for every $1 they take in.

The bottom line result – raise rates to get a better bottom line.

So when you deal with a national insurance company, what happens in California, could affect rates in Ohio.

Dealing with a regional or state specific insurance company, negates that ideology. They control only what happens in their own state.

The result? Usually less wide swings in rates, more steady.

That is why when independent insurance brokers have both, it benefits the insurance consumer. Not all insurance companies are equal.

What happens in Florida, won’t affect a New York only based insurance company. Why? Insurance is run by each state and not a federally run business.
That is why it is different in Florida vs New York.

Be a smart insurance consumer. Deal with a trusted source.