There are several important pieces of information that will help you figure out if you are getting a great deal.
The longer you have been with your current carrier, the better the chances are of finding a BETTER deal than you have now.
A good rule of thumb is to shop your insurance every 2-4 years. Loyalty is a one way street in most cases when it comes to insurance. I have heard before that a person stays with a company for a long time because they believe the company will cover a loss they might not otherwise cover because they have paid premiums for so long to a certain company. As a general rule, this is not the case. A loss determination is figured out using the insurance contract in force at the time of the loss, and not much else. Insurance companies don’t cover losses they are not obligated to pay under contract. There may be the very unusual exception to the rule, but don’t count on it.
INSURANCE IS MORE THAN PRICE
The reason that is in bold type is because a great deal does NOT mean the cheapest price. Buyer Beware!!! If you pay the least amount of money for the least amount of insurance, you will likely be sued for the rest if you cause a loss. If that happens, was it really a good deal? If you have good coverage (appropriate levels of coverage) there will be a difference in price for each company. You want to find the best price for the CORRECT level of coverage. Beware of state minimum limit policies that are quoted by just about everyone to get to the lowest price. Don’t be taken in by that. That is BAD for you. Take 10 minutes and educate yourself (or ask your agent) on what the limits mean for you. You get what you pay for like anything else. Higher limits cost more money, but in a loss, will give you what you need without having to give up equity in a home, or whatever else might be taken in a lawsuit. VALUE is more important than PRICE.
Independent vs Captive agents – what’s the difference?
When looking for a better deal, variety and competition usually mean better deals. I have been both a captive agent and now am an independent agent. As a captive agent, you are “captive” to one company and only one. You are at their will and only able to place insurance for that one company. An agent represents the company to the client in that arrangement. As an independent agent, I have many companies to choose from and I work for the client instead of the company. That is a fundamental and important difference of interest in that relationship. If the company you are with send rates through the roof, I can simply place your insurance with a different company. That is a huge advantage with an independent agent. With one easy to fill out sheet, I can shop your home and auto insurance with multiple companies easily and quickly. When competition and variety are part of the strategy, great deals are easier to come by.
What info do you need to shop your insurance?
A copy of the current insurance declaration page is helpful but not complete. A copy of the page I use is readily available at your request (just email me at steve@securityinsagency.com for a copy). It collects almost everything needed to get the job done with the least amount of info possible. Depending on the answers to some of the questions, there may be a little more needed, but the basics are there.
Call me and I will be happy to discuss any insurance related topics with you regarding how it all works. I am here to help you understand this stuff!!!
At Security Insurance, we specialize in helping people understand insurance and find coverage that’s uniquely suited to their needs. Contact us today for a free consultation.