When I meet with a client to discuss insurance it’s
important for me to understand their priorities and needs – since they’re not
all the same. Equally diverse are the insurance companies in the market place
today, and the insurance agents who represent them.
Here are a few things you need to know about insurance:
Captive agent vs
Independent agent – A captive insurance agent works for one company or
brand, while an independent agent works with multiple companies and can sell numerous
product brands.
How does this impact you? Both agents can sell multiple
lines of insurance (auto, home, life etc…) but an independent agent has the
flexibility to sell insurance from different companies – without brand restriction.
Imagine for a moment how you’d feel if you had to buy clothes from only one
department store. As loyal as you may be to the department store, you can’t
help but shop another store for a better styled blouse or better priced item.
Thus, think of an independent agent as your personal insurance shopper who can
mix and match to meet your needs. All the while, you deal with one agent but
tap into multiple companies.
Periodically review
your insurance coverage – We go through so many changes in our life. We are
single, married, divorced or widowed. We have kids, buy a house, car, boat,
motorcycle or RV. We make minimum wage, join the middle class or strike it
rich. Just as our lives change so should our insurance coverage. Your insurance
coverage needs to adequately cover any potential losses in your life at any
given stage. So, if you haven’t changed your coverage limits in awhile - now may
be a good time to assess how much is enough.
Don’t buy just on
price – The premium you pay for insurance is definitely an important factor
but don’t make it your sole reason to buy. I can sell cheap insurance to almost
anyone, but I probably wouldn’t be doing them justice. You may lower your
insurance coverage to pay a lower rate, but what happens if it’s too low and
you’re faced with a large liability claim? When you need your insurance to work, is during these times of loss or claim. So, a quality coverage may mean paying a quality price – not
necessarily the lowest. As I also previously mentioned, not all insurance
companies are the same. So, review what’s covered in your policy before you
decide to buy. Some companies offer extra coverage for a little more but in the
long run potentially save you money. For example, I have an insurance company
that will waive future violations if you sign up for their program now.
Typically, violations may cause an increase in your premiums but by enrolling in the
program you lock yourself into a lower rate even with future violations*. At
the same time, you build a deductible savings account. These funds are then used
to pay your portion of a deductible during a claim. Again, price is important but what's equally important is the quality of your coverage.
*Does not include major violations such as a DUI.
