5 Biggest Mistakes When Buying Insurance

Insurance can be a tricky purchase.  Auto lienholder happy?  Check.  Mortgage lender happy?  Check.

But this simply isn't enough!  Some things on your insurance policy deserve a little more attention.  As an insurance agent, here are some of the BIGGEST coverage mistakes I’ve seen.

Mistake #1:  Buying Only The Required State Minimum Liability Insurance

Every state has a minimum amount of liability insurance that is required in order to drive a car.  But it’s typically nowhere near enough coverage!  Choosing only the minimum liability insurance could leave you open to a lawsuit, garnished wages, or potentially losing an asset, like your home. 

Discuss different liability amounts with your agent to see what is necessary based on your income, net worth, and liabilities.  (Another bonus?  It won’t cost nearly as much as you might think!) 

Mistake #2: Not Insuring Your Home For Replacement Cost

Many people think they only need enough coverage to insure their home for the amount they paid for it.  Not true!  You need to be insured for the amount of money it would cost to REPLACE your home.

If a fire or tornado destroyed the house, you would need insurance to replace it.  The total cost could be tens of thousands more than the house would have sold for on the market.  If you’re currently only insured for the cash value of your home, you could be at risk! 

Mistake #3: Buying Life Insurance Through Work

Most people tell me that they have life insurance through work and aren’t interested in purchasing their own coverage.  This is also a mistake.

The problem?  The majority of us don’t stay at jobs for 30 years anymore.  And if you develop health issues and leave your current employer….you might not be able to get coverage again!

When you purchase your own life insurance (which is extremely affordable), you are covered no matter where you work or what health problems you might develop in the future.  It’s the smarter choice!

Mistake #4: Buying The Cheapest Policy

It’s tempting to shop for insurance and just pick whatever is the cheapest, but it’s usually not the best idea. 

First you want to make sure that you’re buying from a reputable company.  You want a solid insurance carrier that you can trust to pay your claims. 

And you want to make sure you’re comparing apples to apples.  Does the cheaper policy only insure your home for cash value instead of replacement cost (like mistake #2)? Does one company exclude water leaks but another cover them?  Big details can be hidden in the small print!

Mistake #5: Not Using An Agent

Best way to avoid ALL of these mistakes?  Work with an insurance agent! 

We know all about insurance and can find the right coverage for your specific situation.  We’ll make sure your liability limits are high enough, that your home will be replaced after a loss, that you won’t lose your life insurance when you change jobs, and that you aren’t buying an inadequate policy that doesn’t protect you.

Call us today for a quote!

508-347-9343 

Ask An Agent - Do I Have Full Coverage?

“Do I have full coverage?” is a popular question around our office. Clients often want to know if they have full coverage or liability only on their auto insurance policy. Unfortunately, there is no such thing as full coverage insurance!

Here’s the problem - “full coverage” has become a common term, but it can mean lots of different things. If a bank tells you that you need full coverage, they typically mean Collision and Comprehensive coverage. But you might think that full coverage means you have everything we offer. And there are a few important differences between the two.

Collision is what fixes or replaces your vehicle if you have an accident.

Comprehensive is what fixes or replaces your vehicle after storm damage, theft, vandalism, and other situations that don’t involve an accident.

These two coverages are usually required by lenders and are sometimes called full coverage. But there are other things you may THINK you have when you say full coverage, that aren’t automatically included.

One of those items is Rental Reimbursement. This is the coverage that supplies you with a rental car while your car is in the shop for repairs due to a claim. Another is Towing coverage, which tows your vehicle if it breaks down or even runs out of gas.

So what should you do to make sure you’re protected? The best recommendation is to work with a local agent who can sit down and review your coverage line by line. We’ll explain each item, make suggestions for gaps you may have in your coverage, and make sure that you know EXACTLY what you’ve got! No more vague “full coverage” nonsense. Call us today for a quote or to review your current policy!  

Top 7 Things To Look For When Buying Insurance

So you’re ready to shop for insurance and are hoping for a great deal.  But did you know that there are a few things to look for that are much more important than the price of the policy?  In fact, don’t buy your next policy until you look for these seven things.

#1 - A Top Rated Insurance Company  You want an insurance company that will be around if you have a claim.  Don’t choose a company that you've never heard of with a price that seems too good to be true!  If you aren't familiar with the company your agent is recommending, ask for a little more information.  Find out what they are rated in your state and how long they've been around.

#2 - Choose a LOCAL agency!  While all the commercials on TV will tell you to call a 1-800 number for a quote, it’s usually not a great idea.  A local agency gives the same great policies (from the same companies!) but allows you to deal with one person on a regular basis. It’s nice to have a local agent who you can go visit when needed.

#3 - Choose an agency that offers a variety of policies.  Keeping your insurance with one agency makes it MUCH easier when you have a claim.  Plus you can qualify for huge multiple policy discounts!  Find someone who can take care of all your needs in one local location.

#4 - After-Hours Support  What if you have storm damage in the middle of the night?  Do you want to wait until tomorrow to get assistance?  Look for an agency that offers after-hours support!  Many local agencies will provide you with 24/7 claim assistance numbers.  But make sure to ask for the information and keep it in your cell phone.

#5 - Choose an agency that’s EASY to contact!  You don’t want to have to chase your agent down every time you need something.  Ask if the agency is available by email, text, and phone while doing your shopping.

#6 - Do they offer annual reviews?  Things change, especially when it comes to insurance!  You want an agency that will regularly meet with you to review your coverage and make sure you’re protected.  Ask about their review procedures and how they make sure there aren't any gaps in your protection.

#7 - Excellent Customer Service  When it comes down to it, this is the most important!  Choose an agency that wants your business and wants to give you the best possible service!  

We meet all of the criteria above and would love to work with your family.  Give us a call today for a no-obligation quote and insurance review!

Is There Coverage For My Company Car On My Personal Umbrella Policy?

Under the standard Personal Umbrella Policy there is not coverage afforded for the company car that you may be driving on a regular basis unless you are using that car for personal use AND you have “Use of Other Vehicles” endorsed to your Personal Auto Policy and also have that vehicle listed on your Umbrella at the time of a loss. The vehicle also cannot be “owned” by the named insured. Now if you happen to take the company car that is “not provided to you for your regular use” and happen to have a loss while you’re running “personal” errands, then the Umbrella Policy would afford coverage automatically. If that same scenario were to happen with the company car that was provided to you for regular use; you would need to have that vehicle endorsed to your Auto & Umbrella policies in order to have coverage. This is a tricky situation to say the least, so please contact our agency if you have any questions.

Should I Change My Homeowners Insurance Policy if I No Longer Live in It?

A homeowner’s policy is a homeowner’s policy, right? Wrong! If you are planning on moving out of your home and having someone else live in it; you need to contact your Insurance Agent Professional before you do so. The homeowner’s policy covers “owner occupied” homes so once someone else is living in it, the policy is no longer valid. Your property now needs a rental property policy in order for you to have the proper coverage.

Disability Insurance, Who Needs It?

Have you ever thought that you'll never need disability insurance?  According to the Social Security Administration, one in four 20-year olds will become disabled and unable to work before they reach the age of 67. In 2012 alone, 650,000 workers became disabled. I don’t know about you but those figures astound me. You may think that Worker's Compensation will cover you if you become disabled, but did you know that 90% of long-term disability claims are due to illnesses and not work-related accidents? You’re never too young to be concerned about disability insurance; if you work, you need it. Long-term disability payments may not replace your income 100% (it’s typically around 60% of your income) but can you imagine if you’re disabled and you have no money coming in?  Even if you have coverage through your employer, you should talk to your Financial Advisor to make sure that you have the appropriate coverage to help protect your future.

Changes to your Home Deed

If you’ve made any changes to the deed to your home, make sure to contact your insurance agent to inform them of the change. Often times we don’t always think to contact our agent if we’ve paid off our mortgage, re-financed our mortgage, added our son or daughter to our deed, got married and added your spouse to the deed, or divorced and removed a name from the deed. Any changes such as these require a change to your Homeowner’s Policy to avoid issues at the time of a claim. If you’ve made changes that affect your deed, please contact your insurance agent to discuss those changes so that your homeowner’s policy can be updated accordingly.

Aggressive Drivers

We’ve all seen them.  They cut people off, run red lights, tailgate, weave through traffic, make rude gestures, and are dangerous to everyone around them.

What can you do when confronted by an Aggressive Driver?

• Attempt to get out of his/her way.
• Do not challenge that person.
• Avoid eye contact.
• Ignore rude gestures.
• Wear your safety belt. It will  protect you in a crash.
• If you simply cannot get away from the aggressor, attempt to drive to the closest police station

Even if someone else is being aggressive towards you, do not react to them so that you can get home safely in the end.

Speak to Your Insurance Agent about Home Improvements

Did you know that you may be able to save money on your homeowner’s insurance if you’ve updated your home? If you’ve updated your electric service, roof, or heating system, you may qualify for a more competitive rate. If you’re not sure if you qualify, contact your Insurance Agent to review your account.  Other improvements such as updating your kitchen or putting on an addition will probably increase the value of  your property and you should certainly discuss this with your agent to be sure your homeowner's policy has adequate limits.

It’s always good to review your personal account with your Insurance Agent from time to time to make sure that your home and auto policies are up to date and any questions can be discussed. Not only could your rate be affected, but you may discover that you don’t have coverage for something that you thought was all set.

Why Choose an Independent Insurance Agency

There is a difference. Some people think it doesn't really matter where they buy their insurance. But this misconception could be costing them money, service and protection. Buying insurance isn't like buying bread or milk. Insurance is an important safety net for your family, your home, your car or your business. Don't treat the purchase lightly!

There is a difference in where you buy your protection.
1. Captive Agents, who can sell you the insurance products of only one company.
2. Telephone Representatives, who can offer you the insurance products of one company and only on the telephone.
3. On line websites often limit coverage options available, provide quotes that significantly differ from the actual premium that you will be billed and don't allow customization to meet your needs.
4. Independent Agents, who represent an average of eight insurance companies and research with these firms to find you the best combination of price, coverage and service.