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Why Use An Insurance Agent?

27 April 2015 By Digital Curator Leave a Comment

Image via Flickr user GotCredit

Generally speaking, when you buy direct you cut out “the middleman” – a retailer who buys wholesale from amanufacturer. They mark up the product’s price and sell it to you.

By dealing direct with an insurance company, a consumer takes on a level of risk that they may not realize even exists.

That Was Then…

Traditionally, insurance companies did not sell to the public. Instead their products were offered to consumers by “agents” who had to be professionally licensed to deal directly with the public. Consumers actually paid the agent nothing because it was the insurance company who paid the agent a commission, and this commission was not added to the retail price.

This Is Now…

The agency system is still in place throughout the U.S. You can find dozens if not hundreds of local independent agents in your telephone book or internet guide. However, thanks to the internet you can also go directly to many insurance companies and get a quote. If you like the quote you can often buy a policy by filling out a few more forms, right on the spot.

An independent agent can do important things for you:

Agents have at their disposal the ability to quickly check prices and coverages with dozens – if not hundreds – of different insurance companies.

Independent agents are a one-stop-shop for all of your insurance needs. An agent typically doesn’t sell just auto insurance.

Insurance is a complicated subject. Its an agent’s business to understand it, and communicate it to you so you understand it as well.

Coverages don’t just vary from state to state … they vary from company to company within the same state.

The above is the good news with regard to what an agent can do for you. What about the bad news?

Which brings us to another problem that you create when you go direct. You have no licensed, regulated insuredagent acting on your behalf.

Don’t get us wrong… There is nothing wrong with direct-writer insurance companies. However, if you deal with an agent, there are certain services and protections you are going to get that a direct-writer insurance company simply cannot provide.

by Matt Robertson

See Full Story on lelandwest.com

Do I Need an Insurance Agent?

24 April 2015 By Digital Curator Leave a Comment

Image via Flickr user bloomsburys

It used to be, the only way to purchase car insurance was through an agent. Now with the digital age in full swing another option is available. Purchasing car insurance directly through the internet is becoming more and more popular, which raises the question do I need an insurance agent?

Start by knowing all the methods to purchase car insurance. Then weigh the benefits of each one. Finally, go with your gut feeling. Car insurance is very important and you want to make sure the coverage is made clear at the time of purchase.

Three Sources of Car Insurance

Captive AgentA captive agent is an agent that sells one primary insurance carrier. These agents are not sole proprietors. They work directly for the insurance company.
Independent AgentAn independent agent is an agent that sells insurance through multiple carriers. While an independent agent may sell primarily for one carrier, they still have the ability to place business with other carriers if it benefits the client.
Direct OnlineBuying direct means no agent is involved in the insurance process. The client does most of the work by imputing all the pertinent information online.

Benefits of Having an Agent

Personalized ServicePersonalized service is something a lot of people still look for in the insurance industry.
Knowing Your AreaHaving a local agent that knows your area is also a benefit. An agent can relate to you and where you live.
Cash PaymentsCash is becoming scarce, but for the people who don’t want to give it up, most agencies still accept cash payments.
Multi-policy DiscountA big perk for having all your insurance with an agent is the multi-policy discount.

Benefits of Buying Direct

Fast Online ConvenienceBuying car insurance direct is super fast and convenient. Any time day or night, you can go online and run your own quote.
Potential SavingsIt is possible to get a lower rate when purchasing car insurance direct.

Insurance agents are no longer mandatory with today’s technology. It is more of a personal preference in how you like to do business whether you need an agent or not.

by Emily Delbridge

See Full Story on carinsurance.about.com

Top 5 Reasons Why Consumers Should Use an Insurance Broker

22 April 2015 By Digital Curator 1 Comment

Image via Flickr user Hernan Seoane

Consumers generally think they benefit when they buy insurance direct but is it true?

To find out, we’ve asked people what matters to them when buying insurance, and in turn our panel used those criteria to evaluate the differences between buying insurance via a broker and buying direct online.

What is important to consumers?

In order of importance, these are the things people said matter to them:

Cost.
Ease.
Speed.
Peace of mind that everything is covered.
Security of personal data.

So let’s now analyze these items and let our panel judge how each performs when insurance is bought directly or when via a broker.

1. Cost

Contrary to popular consumer belief we found that broker pricing was actually better than direct insurance pricing.

2. Ease

Many of the consumers in our test case were surprised here. At least half began our test with the impression that buying policies directly would be the easiest option for them. After trying both, almost all had changed their mind.

3. Speed

The results here were quite evenly balanced. In the case of the time taken to generate initial quotation figures, direct services (online) were consistently very quick, while some brokers answered quote requests by personal follow up.

4. Peace of mind that everything is covered

We saw few surprises here. Brokers were largely far more efficient at cross checking policies than consumers, and also very good at educating their customers, explaining what types of cover were available and answering queries.

5. Security of personal data

This was a difficult one to test, and fell largely to our technical team. We did however take into account how consumers felt about their data security after using the various services.

by Adam Bishop

See Full Story on riskheads.org

How Hybrid and Electric Vehicles Affect Your Auto Insurance Quotes

20 April 2015 By Digital Curator

Image via Flickr user Center for Neighborhood Technology

For many hybrid drivers, ditching the gas guzzler for something a bit greener may be more about lifestyle than economics. But if you choose one of these vehicles, it could cost you when it comes to auto insurance quotes.

Hybrid vehicles generally cost more to insure than their solely gasoline-powered counterparts, according to a 2008 study from the Insurance Institute for Highway Safety, although the difference was relatively small in most cases.

One major reason cited for the difference: Alternative-fuel vehicles tend to cost more to repair and replace than conventional vehicles. Also, a study by the National Highway Traffic Safety Administration, from 2009, found that hybrids were more likely to get into accidents involving bicycles and pedestrians, probably because they’re so much quieter than other cars. Plus, because hybrids often are smaller vehicles, the damage they suffer in accidents tends to be more extensive and thus more costly to repair.

These and other factors can play a big role in how much you’ll pay to insure hybrids and electric cars, although it’s not all bad news.

Discounts may be available

A few auto insurance giants offer lower rates for eco-friendly drivers. Travelers and Farmers, for example, give hybrid and other alternative-fuel vehicles a 10% discount. This is in addition to good-driver, multicar and other common discounts. However, it’s important to note that the Farmers discount is only available in some states. And not many other insurers have followed suit with similar discounts.

Safety matters

While alternative-fuel vehicles tend to get into more bike and pedestrian accidents, those accidents often happen at low speeds, according to the government study.

And new research shows hybrid models actually have a leg up on safety over their conventional counterparts because they’re heavier (thanks to their batteries and other equipment). According to the IIHS, the odds of being injured in an accident are 25% lower for people traveling in hybrids than people in non-hybrid models.

Safer vehicles often lead to lower car insurance quotes, although premiums also depend on many individual factors.

Repair costs

Hybrid and electric vehicles generally cost more to repair or replace than non-hybrids, partly because of high-priced components in alternative-fuel vehicles. Labor charges can also be higher if, say, a shop has just one technician qualified to repair gas-electric engines.

Hybrid vehicle owners are more likely to use replacement parts provided by the manufacturer, rather than aftermarket parts made by third-party providers. Aftermarket parts can cost as much as 50% less than those made by the original manufacturer, according to the National Association of Mutual Insurance Companies. Insurance companies love aftermarket parts because they cut repair costs. But debate is raging over whether they should be used at all, and hundreds of repair shops from 36 states are suing major insurers over the issue.

The bottom line

Hybrid and electric vehicles are a great way to reduce carbon dioxide emissions andsave money on gas. But higher repair costs and some safety concerns can make them slightly more costly when it comes to car insurance quotes.

There are many good reasons to choose a hybrid or electric vehicle. Just make sure to factor in the cost of car insurance. You can get an estimate before you buy by using NerdWallet’s car insurance quote t ool.

by Sarah Cooke

See Full Story on nerdwallet.com

Google Launches A New Tool To Sell Car Insurance To U.S Web Searchers

17 April 2015 By Digital Curator Leave a Comment

Image via Flickr user See-ming Lee

Confirming earlier reports that Google has been plotting a move to help sell consumers auto insurance in the U.S., the search giant announced this morning it’s launching a new feature called “Google Compare for Auto Insurance,” a comparison-shopping site that lets you compare the rates from different insurance providers.

Consumers who enter in this search query will see a small, gray questionnaire appear, asking for their zip code, and other information about their vehicle.

Google’s insurance partners, which include Mercury Insurance and MetLife, as well as local providers, is based on a flexible cost-per-acquisition (CPA) model, Google notes, adding that payment isn’t a factor in ranking or eligibility.

Today, Google already provides auto and travel insurance quotes, as well as mortgage quotes in the U.K., and it operates a credit card comparison site in the U.S., all of which fall under the “Google Compare” branding.

The auto comparison U.K. site has been live since 2012, but the U.S. launch has continually been pushed back. However, as of this January, Google Compare Auto Insurance Services, Inc.was licensed to do business in more than half of U.S. states, Forrester noted.

Google says that its comparison technology was built in-house, but did confirm it’s working with “many partners” including CoverHound and CompareNow as part of the quote aggregation process.

The move to offer insurance comparisons to web searchers could help Google generate additional revenue through commissions, but several of the major insurance carriers in the U.S. have been declining to work with Google on this new effort, we understand, including names like Progressive, State Farm, GEICO, and Allstate.

“Many of the major carriers are very resistant to participate on the Google Compare platform,” explains Joshua Dziabiak, a co-founder at car insurance comparison startup The Zebra.

More Data For Google’s Self-Driving Car Biz?

It’s unclear how much revenue Google would generate from this auto insurance comparison site, as consumers may not be prepared to buy from an aggregator like this at present.

But for Google, the comparison site may not be just about an additional revenue stream – it could be about collecting more information on how the different insurance companies price the same risk.

“If you think about what’s going on with self-driving cars in the future, Google is really going to have to understand how insurance companies price risk because the whole model is going to change,” notes Forrester analyst Ellen Carney. “And I imagine that some component of insurance is going to be included with the car,” she adds.

by Sarah Perez

See Full Story on techcrunch.com

Why Your Neighbor Might Get a Lower Auto Insurance Quote

15 April 2015 By Digital Curator Leave a Comment

Image via Flickr user Dean Hochman

Politics. Religion. The state of their lawn. Add auto insurance quotes to the list of things you should never discuss with your neighbors if you want to remain, well, neighborly.

You may find out that they’re paying a lot less for auto insurance than you are, even though you live right next door and have the same insurance company. That might not seem fair, but it’s not unusual. So what gives?

Turns out, a lot more than location goes into an auto insurance quote. Here are some reasons your neighbor might be getting a better deal.

Age

The older you get, the less your auto insurance is going to cost. Well, to a point. Statistics from the Insurance Institute for Highway Safety (IIHS) show a drop-off in driver death rates at age 25, so reaching that age should lower your quote.

Gender

Sorry guys, but research shows that men are involved in accidents and engage in risky behaviors, such as speeding or drunken driving, more often than women, according to the IIHS.

Driving record

Maybe you have three speeding tickets on your record. Or you’ve caused two accidents in the past five years.

Shorter commute

If your neighbors commute to work each day on the train, and you drive 200 miles both ways, their insurance is going to be lower because they aren’t using their vehicle as much as you.

Cheaper-to-insure car

If your neighbor’s vehicle has a better-than-average claims history, that likely translates into a better deal on car insurance, all else being equal.

Think you’re getting a raw deal compared with your neighbor? Find out how you cansave on car insurance, then shop around for a few quotes. You may find a better price than you thought possible.

by Sarah Cooke

See Full Story on nerdwallet.com

Understanding specific insurance terms

13 April 2015 By Digital Curator Leave a Comment

Image via Flickr user Simon Cunningham

As we go through life, we are presented with many risks. Such risks can be minor, such as stumbling as we walk, or a major risk, such as a tornado leveling our home. Insurance is designed to provide a means for us to recover from the unexpected.

In providing coverage insurance companies use very specific words to define the level of harm or injury. Generally, we use words like “risk,” “peril” and “hazard” to mean similar things. Within the insurance industry, these terms each have a distinct meaning.

Risk is used when speaking of a chance for loss or injury. It is used to describe an event that is unexpected or unpredictable. Predictable events cannot be insured. A value can be placed on the consequences of an unpredictable event and can be insured.

Peril is any event or situation that can cause a loss — whether it is loss of mobility, loss of life or loss of the use of property. Peril is the cause for insurance and people can be protected from the consequences of perils. Perils can be hurricanes, robbery or accidents.

Hazard is anything that increases the chance of loss or increases the amount of loss. A burnt out light bulb could result in someone being injured on a darkened stairway. The peril is a fall, the hazard is the burnt out light bulb. A faulty water heater may cause water damage due to leakage. The peril is minor flooding, the hazard is the leaky water heater.

Insurance companies separate risks based on the type of injury or loss. Personal risks are those that involve income, personal mobility, life, or illness. Property risks may include the home, fire and theft or damage to the property around the home. Liability risks involve negligence that leads to injury, death or property damage. This negligence may be any failure to take reasonable care to prevent damage to a person or property.

Insurable risks are those that require an insurance company to pay in the event a particular situation, as determined by the policy, occurs. Pure risks, those that are insurable, are accidental and unintentional. Even though a risk cannot be predicted, the monetary consequence of such a risk occurrence can be determined actuarially. Insurance companies examine the statistics of various scenarios, the frequency of occurrence and the potential loss. A policy is then offered to pay that monetary loss. Insurance cannot and will not pay for those circumstances that are predictable or totally avoidable.

by Mary Fox Luquette

See Full Story on theadvertiser.com

Holiday hire car: Avis still refuses to spell out extra insurance costs when customers book online

10 April 2015 By Digital Curator Leave a Comment

Image via Flickr user David Shankbone

Travellers booking overseas car hire online with Avis, one of the biggest firms, aren’t given full insurance costs until they reach the pickup desk – landing many with extra bills for hundreds of pounds

Car hire giant Avis continues to withhold the costs of additional insurance from customers who book overseas vehicles online, despite promising Telegraph Moneyeight months ago that it was “working on a solution.”

The insurance in question is known as “excess waiver” protection.

If you don’t buy it, you are liable to pay the “excess” or first part of the cost of any damage caused to the vehicle. This is usually about £1,000.

If you buy “excess waiver” cover you won’t pay this excess.

Most of Avis’s rivals, including Europcar and Sixt, do spell out the need for the cover and its cost at the time of booking.

This gives travellers the option to shop around and consider stand-alone car car hire excess waiver policies which can cost as little as £3 per day.

Avis’s own policies are far more costly. Booking a four-door Seat Leon from Malaga Airport for a week in mid-April costs £143 with Avis, for example. The excess payable is €1,400 (£1,020). The add-on insurance required to reduce the excess to zero – not disclosed to those booking online – is €15 (£11) per day.

That would boost the total car hire cost by over 50pc to £220.

Telegraph Money first publicised Avis’s systematic failure to reveal these add-on costs in August last year. The giant car hire firm then acknowledged the problem and promised “a solution”.

But nothing has changed.

Last week, Avis refused to explain why these costs remained hidden from customers at the time of booking. When Telegrpah Money asked whether this refusal was a deliberate ploy to trap customers into paying higher rates at Avis’s desks, it declined to reply.

In an emailed statement it admitted “certain covers and waivers for overseas rentals are not available when booking online” and said “customers will be given the opportunity to find out more about additional waivers and, if desired, purchase them at the time of vehicle pickup.”

It added it was “in the process of updating the end-to-end booking journey.”

In the meanwhile, when it comes to planning their own journeys, Telegraph Moneyreaders should choose another firm where costs are more transparent – or always buy excess waiver policies from third-party insurers before they travel.

by Richard Dyson

See Full Story on telegraph.co.uk

Is It Time to Give Your Insurance Policies a Checkup?

8 April 2015 By Digital Curator Leave a Comment

Image via Flickr user GotCredit

You could be overpaying or underprotected if you’re not regularly reviewing your policies.

The insurance industry often urges customers to check their policies every once in a while to make sure everything is up to date. While that sounds like self-serving advice – because you know any conversation with your insurance agent will end with a pitch to buy more insurance – that doesn’t mean it’s a bad idea.

You may catch mistakes. You probably have a lot of insurance policies – health insurance, life insurance, auto insurance, homeowners insurance.

You might find a better rate. Ken Davidson, co-founder of Dallas-based Eagle Independent Insurance, points out that you may lower your premium if you regularly compare insurance quotes.

You have more assets. Your life doesn’t just change. What you cover does. Leigh Needelman, CEO of Florida Assurers, an insurance agency in Miami Beach, Florida, has a rather colorful example of how assets can change.

You may decide it’s time to bundle. If you have four different policies with four different carriers, you might want to bundle a few. That is, have your homeowners and car insurance with one company, for example.

You may get some discounts. Yes, your insurance agent may talk you into buying more insurance, but at the same time, you may learn that you’re due for some discounts.

Your life has probably changed. If you bought life insurance when you were married or after your first child was born, and you’re now on baby No. 4, you’re probably long overdue for an upgrade.

by Geoff Williams

See Full Story on money.usnews.com

SOFTWARE REWRITES INSURANCE

27 February 2015 By Digital Curator Leave a Comment

Image via Flickr user Michael Daddino

Insurance is all about distributing risk. With dramatic advances in software and data, shouldn’t the way we buy and experience our insurance products change dramatically? Software will rewrite the entire way we buy and experience our insurance products — medical, home, auto, and life. Here’s how:

By changing the way insurance companies price risk

So many more signals are available for insurance companies to better price the premiums we should pay. Drivers that drive carefully in safe neighborhoods vs. recklessly through accident-prone intersections ought to pay different amounts to insure the same car — but all that data isn’t reflected in an annual odometer reading.

By empowering an ongoing relationship between an insurer and insured

Today, our relationship with an insurer revolves mostly around a monthly billing statement sent to us from a mainframe application. You can tell because big chunks of the billing statement are printed in ALL CAPS IN A FIXED WIDTH FONT … the only fonts that existed at the time the applications were written.

By changing the way insurance companies pool capital

Historically, we’ve seen mutual insurance companies (insurance companies owned by policyholders) and stock insurance companies (insurance companies owned by shareholders). We expect to see more crowdsourced insurance companies, just as we’ve seen in other parts of the financial system.

by Frank Chen

See Full Story on a16z.com

Insurance Agency Singapore | Commercial Insurance and Personal Insurance