The following comments were taken from the Tire Business Web site (www.tirebusiness.com). They are in response to the question: What's happening to your company's insurance costs?''
Our insurance costs have tripled in the last two years. Basic coverage for two people, with a $10,000 deductible, is $270 per month.
The company we have is trying to leave the state of Maine and continues to raise rates, but the alternatives are even more costly.
Robert L. Alexander
We are disappointed at the insurance industry's hesitation to provide underwriting in the retread/sales operations. We work hard to attain and maintain a low loss ratio and safe, modern facilities. Why the cold shoulder from the insurance industry?
James F. Hake
Wonderland Tire Co.
Grand Rapids, Mich.
Insurance rates are forever increasing and more so with the Sept. 11 disaster, which was given as the reason for insurance increases.
I tend to believe that 9/11 is used as an excuse for many dollar increases. Unfortunately, there is nothing I can do about it.
What makes things tougher is there are not many insurance companies that want to take on the tire industry's needs, leaving me with no choice but to accept the rates given.
It's almost at the point of, do we stay open? It's gotten incredibly expensive.
We were with the same insurance company for seven years until their rates skyrocketed. Our new company is $5,000 cheaper. But I guess we'll have to wait and see what happens and what they do after the first year.
T&A (Tammy & Andy) Tire Inc.
My business liability insurance tripled when it renewed this last year. We had one claim larger than usual, but I found out later that the amount of that claim that the insurance company was reporting was more than double what the actual claim was.
They don't need a gun. They just hold you hostage.
The insurance companies have used the Sept. 11 tragedy as an excuse to raise rates to cover up for their own poor business practices.
Richard K. Hudson
Hudson's Tire Centers Inc.
We just received a notice from the insurance company that it was not renewing our policy. Why? We don't know.
We started searching for new insurance and got a big surprise with the cost-a big jump of 225 percent! So what is going on? Can you help? They said that tires are a high risk.
The insurance companies abuse us. We've been in the business for about 20 years and never have had a claim. Yet in some cases, we've discovered that the rates can go up between 300 and 400 percent!
I hear from my colleagues that everybody is going through the same thing.
Stephanie Tires Corp.
North Miami Beach, Fla.