Loss Runs is a report issued by your insurance company on any claims you might have had during a given policy term. The report will show the amount paid, open or closed status, type of claims, how many claims, and details about the claim.
The Amount Paid
When we receive your Loss Runs we will first look at the amount paid for each claim. We are looking at the total dollar amount and how many claims. If we see pages and pages of claims we know that there is a Frequency Problem. The higher number of claims, the higher chance our insurance company will have to payout in the future on your account.
If there is one HUGE claim we refer to this as a Severity Problem. Severity Problem means you just had bad luck on one claim over the years.
The best is No claims. This gives us the highest chance of finding you new insurance at a much lower rate. No claims in the past three to five years means discounts on the policy and more insurance carriers willing to give a quote.
Open or Closed
Open Claim means that the claim has not been settled. Less insurance carriers are willing to give us a quote on your policy when there is an Open Claim because they don’t know how much your current insurance carrier will settle the claim for the accident.
Closed Claim means that the claim has been settled. It will give the total amount paid for that claim.
Type of Claim
There are many different types of claims and certain claims we don’t count against your business. The agent reviewing the Loss Runs will understand which ones count and which ones we don’t.
Details of the Claims
Just as it sounds, Details of the Claim will tell us what happened to open the claim.
Loss Runs are just your Credit Report, but for Insurance Rates!
Think of Loss Runs as your Credit Report. More late payments you have on your credit cards the higher your future interest rate will be on loans.
The higher number of claims, the higher your insurance premiums.
