October 05, 2007
Question 10
Q: What’s the cheapest and best insurance I can buy? What company is best?
A: Insurance is regulated on a state level, so policies are written and sold based on statutory, legal or insurance company criteria within that state. This causes policies to very from state to state. If you were to move from say California to Ohio, the terms, coverages and limits (as well as price) of the policy would be different even with the same company; to really understand the differences and understand what your rights are within a state, I recommend establishing a relationship with and working through a local independent agent. An experienced agent should be able to quote you through 6-12 different insurance companies and bundle you different needs (auto, home, life, umbrella, business) with the company that fits you the best.
I view insurance coverage as kind of a three-legged stool: The insurer, the agent, and the insured. The ideal relationship looks out for all three; the insurer writes solid coverage and makes a profit; the agent fills his responsibilities, looking out for the insurer, the insured and makes a good living for his agency; the insured gets solid coverage for a reasonable premium.
I cringe when people shop via the Internet; even if you compare 6-10 different companies, what are you comparing? 6-10 companies unfamiliar with your area or situation who compete against each other on the Internet. Does anyone compare policy differences or are they just looking at limits and prices (or are they just looking at prices); One day you’ll need an insurance agent for something; why not buy your insurance from one?
My favorite companies & companies with good reputations:
USAA – Clients are affiliated with military families (sold through 800- numbers, but very good 800 numbers).
Sentry Mutual (disclaimer, I used to work for them, and was restored after a major fire, so I’m somewhat biased) Wisconsin based insurer, only write in a dozen or so states.
Erie Insurance – PA based, longtime customer service oriented company.
Companies I consider to be poor:
Allstate - Poor treatment of their agency force being tops on my list.
GEICO - First sold through agents, then no agents, now back to agents: please make up your minds. Good commercials.
Farmers - P&C’s closest thing to MLM, except the people at the top is the company itself. Marketing strategies and agency building plan is an embarrassment to the insurance industry. Should change their company slogan to “Grow at any cost”.
Companies I’d avoid at all costs:
Primerica: amateur agency force with high insurance costs, veneered as a ‘Citibank’ company.
United America: High cost health insurance; put you in the poorhouse, but won’t keep you from bankruptcy. See related material [Here] :
There are several steps to help find cheaper rates: for shopping tips see: http://ohio-insurance-forum.blogspot.com/2007/05/insider-insurance-secrets.html
For cheaper car insurance:
For life insurance tips : http://ohio-insurance-forum.blogspot.com/2007/07/10-mistakes-people-make-with-their-life.html
