Blog Authored by: Ken Mogren, CPCU
About the time winter haters start to gloat about mild weather, Mother Nature has a way of reminding us who is in charge in the Weather Department. Well, it’s April and we’re just about out of the woods, so maybe it’s safe to proclaim that we just experienced a year without winter.
Besides avoiding the discomforts of extreme cold and the nuisance of snow removal, we all just saved a bunch of money, too. It should be obvious to anyone who compares heating bills with what’s normal. But it’s going to help on future insurance bills, too. That’s because insurance companies saw fewer claims, thanks to the mild winter.
If you look at your car and see no dents, perhaps you are one of the people who wasn’t in one of the many fender benders that didn’t happen this year. If the ceilings in your house aren’t water stained, you might be one of the people spared from the ice dam problems that winter usually brings.
Insurance is a mechanism for collectively sharing the cost of losses that happen, so when there are fewer losses we should all pay less. A cynic might argue we’ll never see the benefit of this mild winter and that insurance companies will simply enjoy greater profits. More trusting folks will accept that results from good years get baked into future rates, just the way bad years affect future premiums. That’s really how it is. While it won’t show up as a credit on your bill, you can be certain your future bills won’t be as high as they’d have been if we’d had a normal winter.