Insurance Buying Tips for Consumers
Today, plenty of people are buying insurance products over the Internet.
Some say that they are saving money because the competing insurance
companies online often offer insurance through different carriers,
generally have less overhead and the buying process appears to be
quick and streamlined.
However, se sure to not overlook the added value that a professional
independent insurance agent can provide. Major insurance companies
are finding out every day that people like buying insurance through
agents: most people are interested in building a relationship with
their agent in order to get more accountability for their hard-earned
money, and to have a professional advise them (one on one) regarding
their need for insurance.
Currently, many large insurance companies not only have a presence
on the Internet, but are also combining this presence with their "agent
force" to have what they feel will be a winning combination.
Many see this arrangement as having the best of both worlds. Consumers
are able to manage their accounts online and make immediate changes
to some of their coverage(s) when necessary. You will want to keep
this in mind when considering your next insurance purchase.
Listed below is a helpful checklist of tips that have been helpful
to our clients in the past:
1. It's a good
idea to have your insurance agent do what's called a "Personal
Insurance Evaluation" which will uncover any "gaps"
to see if you are under insured in certain areas or perhaps over insured
(which can perhaps save you money). This "evaluation" can
pertain to all lines of insurance.
2. When buying life insurance, ask your agent to do what's called
a "Life Insurance Needs Evaluation," which is a way of determining
how much life insurance you and your family need for financial protection.
3. To help reduce the theft of some of the more frequently stolen
cars, some insurance companies have offered Vehicle Glass Etching,
which encompasses engraving your vehicles identification number into
the vehicle's glass. The idea here is to discourage car thieves by
making the car's parts more traceable if stolen. Interestingly enough,
some insurers have offered this service for free to their insured(s).
4. If you have a home or auto claim less than $2,000 to $2,500 for
example, your insurance company may be able to settle your claim faster
with what is called a "fast pay" or "quick payout,"
which means that your agent may be able to write you a check without
you having to go through the usual process that takes longer to get
your claim settled.
5. When you already have existing full-coverage or liability insurance
with an insurance company, many companies allow you to extend that
same coverage to a newly purchased vehicle for a period of (usually)
thirty days from the date of purchase. This way, you have some time
before you have to pay for insurance to start a policy for the newly
purchased
vehicle. If you only had liability on the existing car, then only
liability would extend to your newly purchased car and the same holds
true for full-coverage. This allows you time to contact your insurance
company to have the new vehicle added to your policy. Note: When referring
to new in this case, it means newly purchased by you, the vehicle
can actually be new or used.
6. Many people don't know that if you hit a pothole and sustain damage
to your vehicle, your insurance company (under collision coverage)
may cover this damage.
7. In most instances, rental reimbursement coverage can only be added
to your auto insurance policy when you have full coverage insurance
and not when you only have liability coverage. When buying any insurance
policy, always read the exclusions or what is not covered.
8. If you will be married or a year older within 60-90 days for example,
and being married or a year older will reduce your auto insurance
rate, be sure to tell your insurance company. Some companies may allow
your rate to be based on that particular age or marital status, given
that you will be a year older or married soon.
9. If an accident is not believed to be your fault and the responsible
driver either has no insurance or is with a "substandard"
insurance company, you may want to consider having your insurance
company fix your car if your insurer is reputable and has good claims
service. In this scenario, you will have a non-chargeable claim on
your driving record. However, certainly consider filing a claim through
the at-fault person's insurance company as your first option.
10. If your vehicle
has any expensive third party or "aftermarket" parts, such
as high-end audio, expensive rims, custom bodywork etc., let your
insurance company know so they can make allowance for this extra equipment
and cover it. The reason you'll want to do this is because insurance
companies will generally only cover a vehicle with standard equipment
installed from the manufacturer, unless they are informed otherwise.
11. Always check the V.I.N. or Vehicle Identification Number on your
application and proof of insurance cards for accuracy. You would be
surprised as to how often insurance companies and agents record numbers
and/or alphabet letters in the V.I.N. inaccurately. And, sometimes
people get hassled by the police because of this.
12. Be sure to inquire about an "accident free" discount
for being accident free with an insurance company for a certain amount
of time (usually 3-5 years), find out if and when you would be entitled
to such discount.
13. If you receive
a cancellation letter from an insurance company indicating that your
insurance will cancel on June 15th for example, in most cases, what
they are really telling you is that your insurance will cancel at
12:01 a.m. the night of June 14th, which is technically June 15th.
However, a lot of people will still rush into an agent's office to
deliver their payment on the 15th.
14. Many larger insurance companies will either not offer you auto
insurance or will charge you a higher rate if you did not have 6 months
of prior, continuous (at least liability) auto insurance coverage.
To get around this, a lot of people will get insurance through a "nonstandard"
insurance company for 6 months and then "switch" to a preferred
carrier at the completion of the 6-month term.
15. If you receive a ticket for a moving violation and your state
has a Traffic Safety School program and you attend, depending on the
violation, you may be able to avoid your moving violation from going
on your driving record, as reported to insurance companies. It is
highly recommended that you consider this option. It may cost you
a little more to attend this "school." However, the amount
of money that you can save by not having 1 or 2 tickets on your driving
record can make a HUGE difference in the cost of your insurance.
16. Buying life and health insurance through group plans is generally
less expensive because the group (as a whole) is sharing in the cost
of the total premium for the insurance. However, keep these important
points in mind when buying life insurance through a group plan:
1. Once you leave your group/employer you may not be entitled to your
life or health insurance any longer, be sure to ask up front.
2. The amount of insurance coverage available for you as an employee
or group member is usually limited to a certain amount.
3.) Group/employer type of life insurance is usually term insurance
and does not offer any opportunity to build cash value. As mentioned
previously, accumulated cash value can help supplement your retirement,
help pay for a child's college education and provide an emergency
resource of funds if needed.
17. Whenever you
refinance a mortgage loan, be sure to notify your insurance carrier
with the new lender's contact information and your new loan number.
Many homeowner's insurance policies lapse/cancel because the bill
from the insurance company for the insurance premium to be paid goes
to the prior lender instead of the new one.
