Dear Insurance agent losing business to me;

I hope this finds you doing well.  It’s been a bit and I know things can be tough for some of us.  Safe to say it could be more challenging now than when you started in the business.   Honestly, if there was an insurance police this would be something they would want to know about, but since there is not I’ll just write this note to you.

When your “competition” helps you

So I was playing around with on-line quoting and of course had to use Geico.  Recently, now about 3 months late I received a well done email.  Obviously now part of a drip campaign.  This is not remarkable but what was there certainly is.

Coverage Coach

FANTASTIC.  First of all it is a very cool tool.  Clean screens, easy to use, etc.  But why is this important?

BECAUSE THE COVERAGE THEY OFFER IS NOT AS GOOD AS WHAT YOU DO!

The worst part about insurance….

**Incomplete thought 1/4/2015**

 

Is all the agents.  Well not quite all of them but lately it seems like most of them.  Likely that the Pareto principle would disprove this but hey it’s been interesting.  What do I mean?  I mean if more agents did what the public thought their “job” was we would need less agents.  Why?  Because then there would be less messes to clean up for the rest of us.

$8 to park at a hospital?

Seriously, that is what it cost when I went to visit my grandmother at the hospital.  That is awful, I have paid less to go to professional sporting events.  $8 can provide adequate nutrition for at least 1 person if not 2 for a day but instead it bought me a parking spot for 1 hour.  There is more than enough evidence that it is the presence of loved ones that truly enables healing yet they make it difficult.  So let’s dive a little deeper;

Who causes “higher” insurance rates?

Most people will immediately think it is the company.  The company sets the rates and the underwriting standards that you accepted when you signed your contract with them.  The company determines which of your tickets, accidents and claims will have an impact on your rate and for how long. ** Despite what you may have heard corporations are not people and cannot get tickets or have accidents or claims**

Get a free quote…

Seriously has anyone ever paid for an insurance quote?  I mean would you actually call a  1-800 number and pay for an auto insurance quote NO.  Why the heck would you, you are in control.  Without you these companies have no chance of survival so I cannot even imagine a day when you will have to pay for an auto insurance quote.

But despite this I would love to hear from anyone that can go a week without hearing an ad touting “get a free quote.”  Where might you see this offer;

Did you know….

That by taking minimum coverage, $25,000/$50,000 in New York you are actually setting yourself up for higher rates.

That I tend to see this coverage more often from the company that does the most advertising.

That your low rate actual makes you pay higher coverage and in the event of an accident could hinder you financial for years to come.

The difference between minimum coverage($25,000) and better coverage($100,000) many times is about $5 a month.

That I cannot think of a circumstance that I would ever do this disservice to anyone.  But then again I don’t provide quotes or promise you cheap insurance.  Who wants to buy cheap things anyhow.

Oh I have plenty of coverage…

REALLY?

How do you know? How do you know that the liability coverage you took because your agent said it is plenty really is plenty?  YOU DO NOT neither do I.  There are some silly sayings out there “rule of thumb”  , “it’s what most people take” , “You don’t need more”  REALLY?

When you hear this please hand your agent a dollar and ask them to buy you a lotto ticket. Because they can apparently predict the future.  Most agents cannot predict the future, I am one of them.  Instead I try and make some logical decisions and use your dollars to purchase as much coverage as we can.  An example;

Want lower rates take higher coverage

That’s right you can get more coverage for less money.  Now the problem with this is most of the companies push low rates mostly give you low coverage.  Then when you shop you are actually not able to get better rates because you got duped into a low rate by taking low coverage.

A solidly caffeinated(made up word) drink from your local coffee shop is sometimes the same price as one month’s worth of much better coverage.  That’s right for $3-$6 you can purchase $100,000 or more in coverage.  So is the company that brings you in on lower rates even interested in protecting you and your family or just providing you a low rate for insurance.

Do YOU trust your agent?

Do you trust your agent enough to get a second opinion?

How about asking your agent what coverage they have and taking a look at their declarations pages?

Sounds like fun to me, let’s see if your agent has full no-fault coverage.  Let’s see if they have matching liability and supplemental coverage.  Let me know how it turns out.

UPDATE 5/14/2015

It has been over four years since this first post.  Sadly, the majority of times I review a policy I end up saying;

I’m not saying it’s bad. I’m just saying I wouldn’t sign my name to it.”