Want to change the discussion from Price to value? STOP ADVERTISING PRICE. Advertising on price is the easy way. It is basically telling the consumer we are a commodity and can not come up with anything original that might bring some value to your life.
Want some evidence? Follow your mail for a month and count the generic garbage being put in front of you that thinks your only concern is price. Even worse , I received the same exact awful letter from four different State Farm agents. Not only is it an awful, demeaning marketing piece but why does State Farm allow there agents to cannibalize each other?
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.
I have no idea why this question comes up so often. Not sure where it started, not sure why it would matter. Either way I was finally asked and it hit me to run a small, non-scientific experiment.
Step one; I asked a transportation professional, this guy Tommy Scott is way more than just a car salesperson, for two Vehicle Identification Numbers(VINS). In this case it will be the new and exciting Chevy Cruze. He provided me with two VINs for IDENTICAL vehicles where the only difference is the color. For our experiment we have a red and a silver Cruze to compare.
Why not? When was the last time you changed companies? When was the last time you actually made your agent or broker actually earn their commission. Make them actually shop around, we are in a competitive market here in New York why not take advantage of it.
How do you start?
Pretty simple, two steps;
Start with a “baseline” of coverage that you are comfortable with having in place.
Talk to 3-5 companies to see where your rate compares.
That’s it. Worst case scenario you feel really good about your rate. Best case you save some money and maybe find a better agent.
2003 Volkswagen Jetta GL: So according to KBB.com the Good Trade in Value is $1700 and Fair is $1125 so maybe I am around $1500. Now private party says $3225 and Fair is $2525, let’s keep being reasonable and say $2875 as private party we won’t use retail because this car is not in excellent condition.
How about Edmunds? A little different process here comes up with $2734 as a trade in $3752 as a private party, same thing here retail seems a bit high.
So KBB average with my adjustments is $2187.50 and Edmunds is $3243 that is about a $1000 difference.
Well most people see their family doctor once a year for a checkup. Most people do their taxes each year and have a review with their accountant. If you have health insurance you probably review that at open enrollment each year. As part of a sound financial plan all of your insurances should be reviewed each year. Why? Are your discounts and coverage adequate? Could you do better? Is your personal information up to date?