Insurance Buying Tips
“overlook these small details and your insurance could cost you way more than it should!”
Five things to remember when buying insurance to help you save TIME & MONEY!
Always shop around and get multiple insurance quotes. This will ensure that you get a good sampling of what the market has to offer. Do not take the first quote that you receive and assume it’s the lowest or best available. There are literally dozens and dozens of insurance companies and each one has their own unique underwriting guidelines. Some companies will offer better coverage, but charge more while others will not offer as good of coverage and of course the premium is usually lower. By getting multiple quotes, it will allow you adequate information to get the best price for the insurance coverage that you need. Now of course contacting half a dozen different insurance agents to get quotes can be extremely time consuming. Having to provide your name, address, phone, what you do, how you do it, do you have losses, blah, blah, blah to each agent over and over. Who has time for that? The good news here…with the advent of the internet and computers you can actually go online and in a few easy steps request the insurance quotes that you need and let the agents and brokers do all the work. Provide a few of your details one time, on a short form and submit your insurance quote request to up to five different agents. You will receive multiple insurance quotes allowing you to compare price, have multiple insurance agents to ask questions of to ensure that you get the correct information and you can get it all form the comfort of your home or office without hassle or obligation.
Research the agent or broker you intend on doing business with. Do a search online for your state’s Department of Insurance website. From there you should be able look up the agent or broker that you are intending on doing business with to ensure that they are licensed and in good standing with the state. Buying insurance from an unlicensed agent will only get you wasted money. If the agent isn’t licensed, it is almost certain that the agent / broker will not have any actual appointments with any insurance companies where as to place the policy that you are attempting to purchase. It is impossible to say what the agent then does with your money, but I am sure that you can see whatever it is, isn’t good and most likely, not legal.
Research the insurance company that are you planning on buying insurance from. Just as it is very important to ensure that the agent or broker you are going business with is licensed, it is equally important to ensure that the company is licensed or at least authorized to do business in your state. Also, research it’s financial standings on independent sources like A.M. Best, Standard & Poor’s, National Underwriter among many others. These resources will allow you to do a check up on the company you want to place insurance with and help you decide if they are stable or not. Placing insurance with poorly rated companies is only asking for trouble. In the event that you choose a troubled company and they aren’t around when you need them to pay claims would only be throwing your money out the window.
Research your specific situation before jumping in to something If you are looking at going into business or buying an existing business, make sure you understand the insurance’s that are required and their associated costs. Some business insurance can be extremely costly and could cause you serious financial trouble if not aware ahead of time. Personal insurance is no different. Homeowners insurance costs vary greatly depending on location, construction type, square footage, est. value etc. Not researching these items could leave you with a much greater expense that expected.
Read the fine print. Even if you have known the agent or broker for many years, be sure to read the fine print. Not saying that your friend would do anything deliberately to cause you harm, but, they may not be aware of a specific clause and how it will affect you specifically. There are however, numerous agents and brokers who will say whatever they think you want to hear in order to make a sale. I have seen clients that were misclassified as far as what type of risk the insurance company thought they were. Agents do this to get a lower premium, of course to help ensure the sale. The problem here is that when the insurance company finds out that they really are a dynamite manufacturer and not the little trinket and gift store the agent has made you out to be, you most likely will get cancelled. Now you may ask, why is this such a big deal, I can just go to another insurance company and get coverage. True, but on almost every insurance application there is this question; “In the last three years have you been canceled, declined or non-renewed for any insurance policy” and if so, WHY? Now this poses a very sensitive position where as if you answer no, then you are committing insurance fraud which is a felony in most states. If you answer yes, then you have to explain why and convince the insurance company that their agent lied and completed the application incorrectly. Oh, by the way, did I mention that you, the legally insured are supposed to sign the application which technically says (if you read the fine print), I certify to the best of my knowledge that the statements previously mentioned are true and accurate to the best of my ability. So with your signature on the application verifying the information was accurate, it is very unlikely that the insurance company will believe that the agent lied.
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