Seasons Greetings

I would like to wish everyone Seasons Greetings 2007 and extend my wishes for you to have a Happy New Year. I'll be setting up my web-site in 2008 and link the blog to the site.

Insurance agents from direct writers to independents

Many clients ask me: What type of agent do I need and where do I find them. There are three types of insurance agents in most states. These are: Exclusive agents, direct writing agents and independent agents. Here are general descriptions. Exclusive agents write for one company such as Allstate or State Farm. They cannot by contract place business with another company. These agents write a large portion of what is called personal lines insurance that is homeowners or personal auto. Direct writing agents are employees of the insurance company and generally are paid a salary in lieu of commission. Wausau Insurance Companies utilize this system as does Liberty Mutual. These agents can write both commercial and personal insurance. The last category is the independent agent. This agent works on commission and can represent numerous insurance companies. They can write both personal insurance and commercial or business insurance. Currently about 55% of all commercial insurance in the United States is written by independent agents. Next; Where do find them. I recommend utilizing friends and associations if you are a member. Using the Yellow pages is really like shooting dice. You don't know what you are going to get. Remember some agents specialize in small businesses while others will not touch a small business. You need to ask direct questions of any agent you might consider. How long have you been in business and can you supply references in the area. If you need additional help please contact me.

Effective Shopping for Business Insurance

Many clients ask me where they should begin in shopping for insurance coverage for their particular business. Here are a few simple rules : 1,Really analyze your business and all of your operations to identify all exposures to risk.2, Write down your findings.3, Discuss the findings with key employees.4,Talk with competitors about particular things they may have found in setting up their own insurance program.5, Utilize your associations if you have this available to you.Many associations have very good insurance plans and suggestions about coverage.6, Use outside consultants if you want unbiased information. Please check references on all consultants. Some so called consultants are in reality insurance agents. The old wolf in sheep's clothing can really bite you. Remember, insurance agents have a built in conflict of interest; the more they sell you the more they make.

I received an e-mail last week about a claims problem a friend/client experienced on their auto. Their car was legally parked on the street and was struck by a vehicle that had lost control. The client's vehicle was deemed a total loss by the other party's insurance carrier but the offer the insurance company made to my client was far short of what their vehicle was worth. The insurance company said that they had found two vehicles in a town 245 miles away that could be purchased for what they were offering my client.
Here is my advice. Call a local dealer and describe your vehicle in detail including mileage and accessories. It is best if you speak to the used car manager when doing this. Always get that person's name and title. Ask that person that if your vehicle as described was on their lot what would they ask for it if someone wanted to buy it. You might want to call more than one dealer if that option is available You then have ammunition if you will to discuss a fair deal with the insurance company. What a vehicle will cost in a city 245 miles away has little bearing on this situation and should not even be considered. I have used this technique several times over the years and have always been able to get my client a better deal.

Auto insurance pitfalls

Far too often people purchase auto insurance at the lowest liability limits required by the state of residence. This can be a very bad mistake. Todays autos with all their gadgets cost a lot of money. If you damage one it can cost you more than you might imagine. That is just the property damage to the auto. The cost of human injury can and usually is much higher.Today a hospital stay may cost upward of $2,000 per day. Courts also award pain and suffering damages to individuals who may be injured by your negligence. Solution: Buy higher liability limits and play it safe.
These higher limits are generally much cheaper than people realize but you need to ask an agent to provide a quote for you. I have one client who increased his liability limits from the state minimum to $100,000/$300,000/$50,000 for about $75 more each year. That's right; the cost can be small indeed when you consider the level of risk that you are taking on when you drive an auto.
One other point; always ask your agent the A.M. Best rating of your insurance company. Look for companies rated A- or higher. Insolvent companies don't pay claims. These type companies leave you, the insured, holding the bag.

3 Mistakes Homeowners make on their coverage

Agents rarely tell you three important points to consider when purchasing homeowners insurance. Point 1: Your deductible is 1% of the total value insured. That's right; If your home is insured for 200,000 then your deductible at the time of a loss is 2,000. This can be lowered to 1/2 of 1% for very little money but you generally will need to ask about it and get the pricing. Also ask about even lower deductibles. Point 2: Jewelry is covered up to a max of $500 or $1,000. The way to increase this is to either; a-schedule the jewelry by having appraisals done and submitted to the insurance company. or b-ask the agent to increase jewelry limit to $5,000 without an appraisal. Point 3: Check your liability limits before you accept the policy. For years agents simply put $100,000 liability limits on policies and bad things resulted. Persons who are guests in your home can and will sue you if they are injured on your property. Don't settle for low liability limits. Ask for the highest limits available especially if you have a swimming pool. A personal liability policy may also be need if you are a high net worth individual. This policy can provide liability limits over and above the limits on your homeowners policy.

Help for insurance buyers

Today The Insurance Advocate arrives to provide help to the end user of insurance products. We do not sell insurance as we were founded to provide unbiased information on insurance products provided to both individuals and businesses.
We have been in business since 1992. Look for our views and updates weekly.